Question for Economic

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Description

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 a “natural monopoly.” 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?

In this “Apply the Principle,” you will have to decide if Google has too much monopoly power.

Instructions

Read the following New York Times article: Google Fined Record $2.7 Billion in E.U. Antitrust Ruling

QUESTION 1

Based on what you read, do you think Google is a harmful monopoly that should be subject to U.S. anti-trust action? Explain

QUESTION 2

Do monopoly powers harm an economy? How so?

QUESTION 3

Why is some degree of monopoly power permitted?

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