What is the danger in creating a natural monopoly too early? Is is too early to make internet and cable services a utility? Why? 2. When a monopolist sets prices without regulation, the government will step in to eliminate this type of activity, sometimes by regulating natural monopolies like utilities, other times forcing a company to be broken up or selling a segment of market share.

The reason the government regulates monopolies is because of the economic inefficiencies that develop when prices are set higher than where demand and supply meet in equilibrium. This causes a deadweight loss. So why is it that the government doesn’t apply this same logic to minimum wage? Does setting prices (wages) in the labor market create economic inefficiencies, keeping demand and supply from a natural equilibrium? Is there a difference between the two scenarios?