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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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Solution Summary

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

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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 ...

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