Methods of Controlling Monopoly:1. Legislative Method:
Government can control monopolies by using legal actions. Anti-monopoly legislation has been performed to ensure the growth of monopoly. The objective of the act is to prevent the unwanted growth of private monopolies and concentration of economic power in the hands of a small number of families and individuals.2. Controlling Price and Output:
This technique can be exerted in the situation of natural monopolies. Government would fix either output or price or both.3. Taxation:
Taxation is the other technique by which the monopolistic power can be prevented or controlled. Government can oblige a lump-sum tax on the monopoly firm, irrespective of its level of output. Accordingly, its net profit will drop.4. Nationalization:
Nationalizing large companies is one of the solutions. Government might take over these monopolistic companies that are exploiting the consumers.5. Consumer’s Association:
The development of monopoly power can as well be controlled by persuading the formation of consumers associations to enhance the bargaining power of consumers.
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