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Why Is Monopolies Harmful And How Can Regulation Ameliorate These Harmful Effects?
Why Is Monopolies Harmful and How Can Regulation Ameliorate These Harmful
Why is monopoly ‘harmful? How can regulation ameliorate these harmful effects?
What problems confront the regulators?
In order to deduce that a monopoly is ‘harmful', there must be another market
system which is preferable to monopoly so as to offer greater benefits to the
public. A monopoly can therefore be compared to perfect competition. If the
benefits of perfect competition outweigh the benefits of monopoly then a
monopoly can be regarded as ‘harmful' since the consumers are not receiving the
maximum possible utility for their purchases.
Monopolies ....
Word count: 876 - Page count: 4
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