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? Take no action. Turn the company into a public enterprise. Enact antitrust laws to increase competition. Regulate the pricing behavior of the firm
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