Policymakers can respond to the inefficiency of monopoly behavior in four distinction ways, they can use antitrust laws to try to make the industry more competitive according to our text; use price regulation to impact what the monopolist is allowed to charge; take over the operation by turning it into a government run enterprise; or do nothing at all.
1. Provide the evaluation each of these four approaches by listing the advantages and disadvantages of each.
2. Explain which approach would you favor and why if you were a policymaker.