ENTREPRENEURSHIP

Detailed explanation-1: -The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through: Price capping – limiting price increases.

Detailed explanation-2: -Answer and Explanation: The correct option is d. Barriers. A monopoly is able to maintain its power using barriers to entry and exit.

Detailed explanation-3: -While governments usually try to prevent monopolies, in certain situations, they encourage or even create monopolies themselves. In many cases, government-created monopolies are intended to result in economies of scale that benefit consumers by keeping costs down.

Detailed explanation-4: -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-5: -What is a government monopoly? Government monopolies are situations in which the government imposes restrictions or provides businesses the sole right to produce and sell their products.