126k views
0 votes
What MIGHT be the purpose of government regulation of natural monopolies, or economies of scale?

2 Answers

2 votes
Gov't regulations might be used to facilitate competition
User Maralyn
by
7.5k points
5 votes

An anti-trust agency is a government entity that is in charge of guaranteeing that mergers and acquisitions of companies do not go against the principles of the free market. In other words, whenever a corporation is too big and starts acquiring its competitors, anti-trust agencies may intervene in order to halt the operation or apply some restrictions.

User Justin Wiseman
by
8.1k points