question-for-economic
Description |
By now you know that monopoly power occurs in most markets. You also know that in some cases a regulated monopoly produces a better outcome than a “natural monopoly.†Yet an inappropriate use of monopoly power is the basis for an anti-trust decision. The question remains: When does a firm have too much monopoly power? In this “Apply the Principle,†you will have to decide if Google has too much monopoly power. |
Instructions |
Read the following New York Times article: Google Fined Record $2.7 Billion in E.U. Antitrust Ruling |
QUESTION 1
Based on what you read, do you think Google is a harmful monopoly that should be subject to U.S. anti-trust action? Explain
QUESTION 2
Do monopoly powers harm an economy? How so?
QUESTION 3
Why is some degree of monopoly power permitted?