Question: Suppose that a computer software company controls the operating system market. Although the government knows that the price is higher than it would be in
Suppose that a computer software company controls the operating system market. Although the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovation in the high-tech industry, a policy goal of the government. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? Enact antitrust laws to increase competition. Regulate the pricing behavior of the firm. Turn the company into a public enterprise. Take no action
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
