Economics

Apply the Principle: Monopoly Power

Due Week 5 worth 60 points

By now you know that monopoly power occurs in most markets. You also know that in some cases, a regulated monopoly produces a better outcome than competition. Yet an inappropriate use of monopoly power is the basis for an anti-trust decision. The question remains: When does a firm have too much monopoly power?

In this “Apply the Principle,” you will have to decide if Google has too much monopoly power.

Read the following story about this topic: https://www.nytimes.com/2017/06/27/technology/eugoogle-fine.html?mcubz=0

Answer the following questions: 1. Based on what you read, do you think Google is a harmful monopoly that should be subject to U.S. anti-trust action? Explain. 2. Do monopoly powers harm an economy? How so?     3. Why is some degree of monopoly power permitted?

Apply the Principle: Monopoly Power 60 points Novice Competent Proficient Based on what you read, do you think Google is a harmful monopoly that should be subject to U.S. anti-trust action? Explain.

10 points

Work is not submitted or question is not answered.

Student work answers the question but is not based on the article. Opinion is logical but not fully explained.

Student work is based on the article. Opinion is logical and well explained. Explanation is thorough.

Do monopoly powers harm an economy? How so?

10 points

Work is not submitted or question is not answered.

Student work answers the question. Answer is logical but not fully explained.

Student work answers questions logically. Explanation is thorough and well thought out.

Why is some degree of monopoly power permitted?

40 points

Work is not submitted or question is not answered.

Student work answers the question. Answer is logical but not fully explained.

Student work answers question logically. Explanation is thorough and well