THE VIRGINIA DYNASTY 1801 1825
AMERICAN INDUSTRIALIZATION FACTORY SYSTEM AND MARKET REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monopolies had environmental impacts on big cities
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They allowed a company to control the price of a product without any competition
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They were unattractive to consumers because of their physical location
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Many felt monopolies decreased employment
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Detailed explanation-1: -Because it has no industry competition, a monopoly’s price is the market price and demand is market demand. Even at high prices, customers will not be able to substitute the good or service with a more affordable alternative. As the sole supplier, a monopoly can also refuse to serve customers.
Detailed explanation-2: -The disadvantages of monopolies include price-fixing, low-quality products, lack of incentive for innovation, and cost-push inflation.
Detailed explanation-3: -Because they face little or no competitive pressure, monopolists often produce inferior products because they know that customers cannot find an alternative product or service. Monopolists are free to limit production, driving prices even higher.
Detailed explanation-4: -A monopoly is when a single company dominates an industry and can set prices for its product without fear of competition. Monopolies limit consumer choices and control production quantity and quality.
Detailed explanation-5: -A monopoly is a market structure where a single seller or producer assumes a dominant position in an industry or a sector. Monopolies are discouraged in free-market economies as they stifle competition and limit substitutes for consumers.