62: Monopoly And Pubic Policy

Question 1

public ownership

Answer 1

for a natural Monopoly, the good is supplied by the government or by a firm owned by the government, thereby protecting the consumers interests by setting prices without maximizing profits

Question 2

price regulation

Answer 2

limits on the price monopolists are allowed to charge

Question 3

what do monopolists do to surplus?

Answer 3

reduce total surplus