This is a formal paper. You will be graded on content, along with spelling and grammatical quality. Your paper must be typed, double spaced, with 1-inch margins around, and no longer than 750 words. I will only read the first 750 words. Graded on your discussion on the topic described below, as well as the support provided for your opinions. Where possible, please use specific facts and data to support your opinions. Use proper citation format, footnotes and a bibliography. I reserve the right to ask to see drafts of your paper. Please save earlier drafts for this purpose.

In examining publicly traded firms in the United States, Grullon, Larkin and Michaely find that “over 75% of U.S. industries have experienced an increase in concentration levels over the past two decades”1. Joseph Stiglitz has written many articles arguing corporate consolidation has led to an exploitation of consumers, while companies have increased profits and returns to shareholders. At an extreme, Miller and Segal argue that Facebook has become a ‘dangerous monopoly’ and should be broken up.

Answer the following questions.

1. Briefly define a monopoly and explain the reasons for the development of antitrust laws in the United States.

2. Why do you think industries are becoming more concentrated? Do you think this is something that can be prevented?

3. What are the advantages and disadvantages of monopolies?

4. Do you think Facebook should be broken up? Use support for your position. You can use the article provided and/or additional articles.