Some economists argue strongly that monopoly (or monopoly power) is a huge problem for the economy, and that the government needs to take vigorous action to eliminate or control monopoly (through the use of anti-trust laws or regulation). Other economists seem to believe that monopoly really isn’t a problem that we need to worry about that much.
1) Why do some economists worry so much about monopoly – in what ways do they believe that monopoly is inferior to perfect competition?
2) What is it that convinces other economists that monopoly actually isn’t all that much of a problem? (Here are some questions that might be worth thinking about: What is the source of the monopoly? What are the effects of regulation or vigorous antitrust enforcement as compared to leaving the market alone? Are we talking about the short-run or the long-run?)