Suppose that there is only one provider of a service in a state. Because this provider experiences economies of scale, the government does not want to break it into smaller pieces, but it does want the provider to supply the efficient quantity. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? Use the law to increase competition. Turn the company into a public enterprise. Regulate the pricing behavior. Do nothing at all.
Suppose that there is only one provider of a service in a state. Because this provider experiences economies of scale, the government does not want to break it into smaller pieces, but it does want the provider to supply the efficient quantity. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? Use the law to increase competition. Turn the company into a public enterprise. Regulate the pricing behavior. Do nothing at all.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...
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![10. Public policy toward monopolies
Suppose that there is only one provider of a service in a state. Because this provider experiences economies of scale, the government does not want
to break it into smaller pieces, but it does want the provider to supply the efficient quantity.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
Use the law to increase competition.
Turn the company into a public enterprise.
O Regulate the pricing behavior.
Do nothing at all.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F916af8db-c91b-410c-80f0-d0f7c6a85ae2%2F206fb8be-f81b-4343-a65f-b8a384020f07%2Fhay6t4a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10. Public policy toward monopolies
Suppose that there is only one provider of a service in a state. Because this provider experiences economies of scale, the government does not want
to break it into smaller pieces, but it does want the provider to supply the efficient quantity.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
Use the law to increase competition.
Turn the company into a public enterprise.
O Regulate the pricing behavior.
Do nothing at all.
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