Government Regulation of Monopoly (Essay Sample)

In addition to other comments you may have, address the following in your response posts:
Brainstorm possible methods for monopoly regulation. How do you believe these methods ensure a more fair and balanced system?
Use any personal experience, if appropriate, to help support or debate other students' posts. If differences of opinion occur, debate the issues professionally and provide examples to support your opinions.
I have included the topic:Discuss the pros and cons of two monopoly regulation methods and evaluate their effectiveness:
Which regulation method is the most effective? Why?
Which regulation method fits and exemplifies the two regulation theories?
If you were charged with regulating a monopoly, how would you do it?
Take parts from each regulation method you discussed and explain why you think your method would be effective.

Response 1: Without government regulation, monopolies could put prices above and this would lead to allocative inefficiency and a decline in consumer welfare. In a monopsony power, a firm with monopoly selling power may also be in a position to exploit monopsony buying power. Some industries are natural monopolies due to high economies of scale, the most efficient number of firms is one 

Response 2: 
The most effective regulation is probably government regulation and restriction. Typically, when you don't follow a government regulation there is a fine that comes along with that decision. One of the best ways for someone to learn a lesson is to pay for it their self. I'm not one for a new law, but unfortunately it is the only way to make some people follow the rules.
Licences are also a good regulation method. A license is a privilege and it can be taken away. With that said, it is pretty easy to understand why someone would not want to have their livelihood taken from them. It also limits competition. Some people just don't want to be bothered with the work it takes to obtain the license and the issuer knows that the applicant is dedicated enough to care.
If I had to regulate a monopoly, I think I would do it with the recognized methods that are already proven to be effective. When you give someone a license and then regulate what they can do, you now have then under your control like when you tell a kid they cant have desert unless they finish all there dinner. Its like reverse psychology or manipulation, the licensee will always listen if there's an incentive.