Question

Does each of the following government activities promote competition or limit monopoly power by regulating markets? Place each in the correct category. 

Items (5 items) (Drag and drop into the appropriate area below)

• Forcing a municipal water company to limit rate increases

• Limiting content on public airwaves

• Directing local cable companies to reduce Internet fees for rural consumers

• Preventing the merger of two pharmaceutical companies

• Breaking up Standard Oil into smaller companies

Categories

• Regulating markets







• Promoting Competition

Answer 1

The activities that regulate market are: 1. Forcing municipal water company to limit rate. 2. Directing local cable companies to reduce internet fees for rural consumers. 3. Limiting content on public airwaves. The activities that promote competition are: 1. Breaking up standard Oil into smaller companies 2. Preventing the merger of two pharmaceutical companies.