In considering antitrust policies regulating monopolies what would be likely outcome if regulators underestimate contestability existing markets?
Breakup dominant firm that drives down overall industry profits while creating room multiple smaller players compete against each other ;
Regulators may unintentionally stifle innovation by imposing excessive restrictions innovative companies that are not true monopolies but rather exert temporary market power due niche specialization dynamic competition environment .
Excessive focus single large entity ignoring emerging threats consolidation related sectors global economy .
Overregulation leading actual enhancement welfare consumers monopoly produces unique good/service serves particular need society ;
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