Economists argue that government
regulation is often beneficial to businesses that are
regulated. Economists argue this because government
often prevents other people from entering the
makes markets contestable.
reduces barriers to entry.
allows the law of comparative
advantage to benefit firms.
In the past many economists have
suggested that regulation rather than antitrust is a more
appropriate government response to monopoly
special interest groups are especially
influential in shaping government policy.
monopoly develops because of economies
when the forces of "creative
destruction" are evident..
anti-trust laws are ruled