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    governmental regulation of monopolies and potential monopolies

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    Why is the government so quick to regulate monopolies and potential monopolies? What are the major concerns and evils that arise from this market structure?

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    https://brainmass.com/economics/monopolies/governmental-regulation-of-monopolies-and-potential-monopolies-357862

    Solution Preview

    Because monopolists do not have competitors they can maximize their private gains at the expense of that of consumers. In perfect competition the equilibrium price is where p=mc with zero economic profits. In the case ...

    Solution Summary

    The governmental regulation of monopolies and potential monopolies is briefly debated.

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