ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Antitrust laws and regulations are in place to discourage monopolistic operations, protect consumers, and ensure an open market.

Detailed explanation-2: -profit controls-The government can regulate monopolies by limiting the amount of profit they are allowed to make. A maximum rate of profit can be set equal to what the regulator thinks a firm would earn in a competitive market.

Detailed explanation-3: -Government and public authorities run these monopolies directly or impose price ceilings, which are not too low from monopoly price. This saves the consumers from having to pay high monopoly prices. This limits monopoly power.

Detailed explanation-4: -Firms in monopolistic competition differentiate their products through pricing and marketing strategies. Barriers to entry, or the costs or other obstacles that prevent new competitors from entering an industry, are low in monopolistic competition.

Detailed explanation-5: -Examples of anti-competitive practices include: Predatory pricing: A company with a monopoly or multiple companies colluding demand an exorbitant price for a product that consumers need, such as a medication.