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Discuss some policy options a government could have to intervene in such market and prevent the monopoly creation. (2points)
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37 votes
Discuss some policy options a government could have to intervene in such market and prevent the monopoly creation. (2points)

User Maugch
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1 Answer

19 votes
19 votes

Answer:

Equal distribution of privatization

Legal restrictions on the formation of cartels

No privatization of key area ( Military, Electrics etc )

Step-by-step explanation:

When privatize, distribute equally to the all the buyers and not letting the control of a sector falls into the hand of 1 buyer as it will create a monopoly.
Legal restrictions on the formation of cartels will prevent market manipulation, a factor that can create a monopoly ( or oligopoly ) in the market.

User Ewald
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