Describe THREE ways by which the power of the monopolist can be controlled. – NABTEB QUESTION

The ways by which the power of the monopolist can be controlled:

i. Encouragement of competitors by the government

ii. Nationalization

iii. Price control

iv. Enactment of laws setting standards for the monopolist and making mergers illegal

v. Imposition of higher taxes on monopoly profits may curb profiteering

vi. The discovery of substitutes will reduce the power of the monopolist.