Deliverable

Answer the following questions and provide appropriate citations.  

AT&T used to be a regulated monopoly.  For years if you wanted to make a phone call (either local or long-distance) you had to go through AT&T.

Using the knowledge you have learned from this week's learning assignments answer the following questions:

The government charged AT&T with monopolizing the long-distance phone market and the court ordered that AT&T ("Ma Bell") be split up into several smaller competitive entities ("Baby Bells"), which were in-turn still regulated by the government. Why might it be more efficient to have a competitive market for the long-distance phone service and regulated monopolies for local phone service?