Asked by Lesley Figueroa on Jul 16, 2024

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Public policies toward monopoly in the United States often consist of:

A) laws outlawing all of them.
B) the regulation of natural monopolies.
C) government takeover if monopoly profit exceeds a certain level.
D) forcing monopoly industries to become perfectly competitive.

Natural Monopolies

A market dominated by a single seller because of high entry barriers or because the service or product is most efficiently supplied by a single provider.

Government Takeover

An acquisition where a government assumes control over a company or industry, often to stabilize the sector or protect national interests.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit.

  • Acquire knowledge on the nature of natural monopolies and the reasoning for state measures directed at these entities.
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ED
Ekrem Demirbo?aJul 21, 2024
Final Answer :
B
Explanation :
The regulation of natural monopolies is the most common policy toward monopoly in the US. This means that these monopolies are allowed to exist, but they are subject to government oversight and regulation to ensure that they do not abuse their market power and harm consumers. Outlawing all monopolies or forcing them to become perfectly competitive would not be practical or effective, and government takeover of industries based solely on profit level would not be a sustainable or market-friendly solution.