Explain the best way to deal with the monopoly power problem.

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WORD LIMIT – MAXIMUM 500 WORDS Using the Monopoly model, show using diagrams how a monopolist may sustain abnormal profits for the indefinite future. Should the competition commission litigate against firms who have a dominant market position? In your answer, make sure you use a diagram, list the assumptions for the model, and give examples of real world markets that may be dominated by monopolists. The diagram used should be your own and not taken from another source.

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Chapter 12, Problem 11QP

To determine

Explain the best way to deal with the monopoly power problem.

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