USA HISTORY

Detailed explanation-1: -Monopolies limit consumer choices and control production quantity and quality. Monopolistic competitive companies must compete with others, restricting their ability to substantially raise prices without affecting demand and providing a range of product choices for consumers.

Detailed explanation-2: -A monopoly limits available substitutes for its product and creates barriers for competitors to enter the marketplace. Monopolies can lead to unfair consumer practices. Some monopolies such as those in the utility sector are government regulated.

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: -Monopolies are firms who dominate the market. Either a pure monopoly with 100% market share or a firm with monopoly power (more than 25%) A monopoly tends to set higher prices than a competitive market leading to lower consumer surplus.

Detailed explanation-5: -Monopolies create a lot of fear in consumers because they mean that even in this capitalist society, people cannot get the best products for their money. The monopolies slow down innovation and efficiency, buying other companies when they do not have the leading product, and raising prices to make more money.