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Monopolies are often regulated, should we also regulate oligopolies in the United States? What would be the advantages or disadvantages?
Monopolies are often regulated, should we also regulate oligopolies in the United States? What would be the advantages or disadvantages?
Expert Solution
Oligopolies should be regulated in the United States. All businesses should have regulatory oversight, and oligopolies are no exception to this.
Advantages of regulations with oligopolies include:
- Increased ability for competition in the marketplace.
- Possibly lower prices for the products and services
- Flexibility within the marketplace (such as some products aimed at different types of individuals)
Disadvantages of regulations with oligopolies include:
- Disrupt the current marketplace
- Force more than the oligopolies to comply with the regulation (if the laws are written incorrectly), and
- Increased cost prices for items
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