Policymakers can respond to the inefficiency of monopoly behavior in four distinction ways, according to our text. They can: use antitrust laws to try to make the industry more competitive; use price regulation to impact what the monopolist is allowed to charge; take over the operation by turning it into a government run enterprise (nationalize); or do nothing at all (laissez faire).
Please respond to all of the following prompts:
- Critique each of these four approaches by listing the advantages and disadvantages of each.
•If you were a policymaker, which approach would you favor? Why?