Monopoly Power 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 competition. 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?
1. Do you think Google is a harmful monopoly that should be subject to U.S. anti-trust action? Explain.
2. Do monopoly powers harm an economy? How so?
3. Why is some degree of monopoly power permitted?