ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How much control over prices do monopolies have?
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no control-the consumer controls the price
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all of the control-the consumers have no say
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its an agreement between the seller and the consumer
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None of the above
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Explanation:
Detailed explanation-1: -In a monopolistic market, the monopoly, or the controlling company, has full control of the market, so it sets the price and supply of a good or service.
Detailed explanation-2: -A monopoly in business is a company that dominates its sector or industry, meaning that it controls the majority of the market share of its goods or services, has little to no competitors, and its consumers have no real substitutes for the good or service provided by the business.
Detailed explanation-3: -Monopolies are generally considered to be bad for consumers and the economy. When markets are dominated by a small number of big players, there’s a danger that these players can abuse their power to increase prices to customers.
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