Suppose the two largest US manufacturers of athletic shoes and clothing want to merge. The government agency that oversees mergers determines that the merger will result in a monopoly. Which action might the government agency

take in order to allow the merger but prevent a monopoly?

A)

regulate the company so its prices are fair

B)

forbid the company from selling items online

C)

force the company to sell off some of its product lines

D)

encourage competition by subsidizing other companies

Please help me with this

A. regulate the company so its prices are fair

Explanation:

A monopoly is simply when there's a single seller for q particular product and the seller faces no competition and therefore is regarded as a price maker as he can sell the goods at any price he or she wants.

The action that should be taken by the government to prevent a monopoly is to regulate the company so its prices are fair. This will help the government to prevent the company from not overpricing their good.

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