Google has an 80 percent market share in search advertising. It is a monopoly. In the early 20th century, Supreme Court Justice Louis Brandeis said, “in a democratic society the existence of large centers of private power is dangerous to the continuing vitality of a free people.” He believed that unless it is a natural monopoly it should be broken up.

a. How would we test whether Google is a monopoly in the Internet advertising market?

b. Explain why the Internet advertising market might be a natural monopoly.

c. How does Google’s dominant position as a provider of Internet advertising influence the price and quantity in this market?

d. How would breaking Google into two providers of Internet advertising influence the price and quantity in this market?