10. Public policy toward monopolies Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? Regulate the firm's pricing behavior. O Turn the company into a public enterprise. O Do nothing at all. O Use antitrust laws to increase competition.

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Chapter25: Government And Product Markets: Antitrust And Regulation
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10. Public policy toward monopolies
Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility
company is taking advantage of consumers with unfair pricing policies.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
Regulate the firm's pricing behavior.
Turn the company into a public enterprise.
O Do nothing at all.
Use antitrust laws to increase competition.
Transcribed Image Text:10. Public policy toward monopolies Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? Regulate the firm's pricing behavior. Turn the company into a public enterprise. O Do nothing at all. Use antitrust laws to increase competition.
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