What are the government's options regarding monopolies? Do you think the Justice Department made a mistake in breaking up AT&T? What if anything would you have done differently? Where do you think this industry is headed (will it be monopoly, oligopoly, or monopolistically competitive and why)?
Governments can approve a monopoly or they can force the breakup or division of a monopoly into smaller, autonomous organizations. Governments cannot provide all services and needs of people so companies such as power companies, utilities, and other local types are approved for doing such work. The government owned postal service is a monopoly, though it has some competitors, the delivery of mail is usually thought of as only the work of the Post Office. In this case, the government has moved to limited privatization and in many countries, only limited competition of specific ...
A discussion on the government's role in the breakup of AT&T, if it was correct and government options on monopolies.