Answer to Question #264297 in Microeconomics for asd

Question

Singer Britney Spears has a monopoly over a scarce resource: herself. She is the only person who

can produce a Britney Spears concert. Does this fact imply that the Government should regulate the

prices of her concerts? Why? Or why not?

Answer 1

In the above-shown scenario, like the Britney spears is the only monopoly over her concert production and she can only control the prices as well but the government should regulate the prices of her concerts because not every citizen can afford her concert prices and in result, she may not gain the audience in order to make profits out of it.

Now when the government regulates the prices and sets at that level where everyone can afford her concert as well and benefits her also. Therefore, the YES government should regulate the prices of her concerts.