explane monopolies in Rationale of Regulations by providing a definition, an example, and a discussion of the role of regulation in solving or controlling the problem.

the topic monopolies

Rationale of Regulations A. Monopolies: Monopoly is a case when one seller produces for the entire industry. This product is considered unique and there is no substitute. There is restriction for a similar product to enter the market. For example, STC before establishing other companies, or its landline service. Monopoly negatively affects the market, where there is no room for competition, which is likely to result in higher prices. However, some large projects, such as, electricity and railway to be operated through one sole company. In this case, regulation, such as anti-trust law and competition law will control monopoly. 4