A) Is Facebook a monopoly? Or a natural monopoly? Why or why not?

Facebook entered the domain of online social media with only one competitor named Orkut. Over a period of time, various companies entered the market like Instagram, WhatsApp, Pinterest and so on. Eventually, Orkut closed down and Instagram and WhatsApp were taken over by Facebook. Needless to mention facebook enjoys the status of being a monopolist and more specifically it is a natural monopoly in the domain of online social media.

B) Who benefits and who is harmed if Facebook is a monopoly or natural monopoly?

Facebook benefits by enjoying the controller of social media by being a monopolist. Facebook users and advertisers are being exploited by Facebook popularity.

C) What are the ways to address the concerns about Facebook's market power?

Regulatory checks need to be mandated if by the government authorities to control the monopoly market power enjoyed by Facebook.

D) Does this type of intervention work? Why or why not?

This type of intervention will definitely work. The real-life example is the case of the Chinese ban on Facebook.

E) What do you think should be done, if anything, about the market power Facebook has?

Market power should be controlled by the government and regulatory authorities so as to avoid the misuse of data and avoid the over-dependence of people of Facebook.