WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
AMERICAN INDUSTRY DEVELOPMENT IN THE GILDED AGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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reduce business competition
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keep prices low
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give consumers a greater choice in purchasing goods & services
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lead to a greater variety in the price for a particular product or service
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Detailed explanation-1: -The disadvantages of monopolies include price-fixing, low-quality products, lack of incentive for innovation, and cost-push inflation.
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: -Monopolies in American history are large companies that controlled an industry or a sector, giving them the ability to control the prices of the goods and services they provided. Many monopolies were considered good monopolies, as they bring efficiency to some markets without taking advantage of consumers.
Detailed explanation-4: -Consumer surplus is the additional benefit enjoyed by consumers over the price that they paid for the product. Monopolies, on the other hand, set prices to maximize their own profits, by decreasing supply, increasing their own producer surplus at the expense of both consumers and society.