Which of the following governmental actions would eliminate some or all of the inefficiency that results from monopoly pricing?
1) There is nothing the government can do to eliminate any inefficiency associated with a monopoly.
2) Force the monopoly to operate at a point where its marginal revenue is equal to its marginal cost.
3) Prohibit the monopoly from price discriminating.
4) Policymakers can regulate prices that the monopoly charges.
