EmmaEllis123
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PLZZZZ HELP!!! I will give Brainliest!
Considering your previous knowledge of monopolies and the nature of competition; how do monopolies hinder competition and why is it important for governments to take steps to limit this business practice? Please provide at least two examples.

Respuesta :

emogirlmyla
Because of the lack of competition, monopolies tend to earn significant economic profits. These profits should attract vigorous competition as described in Perfect Competition, and yet, because of one particular characteristic of monopoly, they do not.

Answer:

Read below! :)

Explanation:

A monopoly is when a single business controls the provision of a good or service, which gives it an enormous competitive advantage over any other competition.  

Imagine your favorite food, and consider what would happen if only one business on this earth could give it to you. That business is the only one that can give you what you want, so they don't have to worry about any competition at all. Imagine if only one company in the world sold paper! Do you know how many people need to use paper?  

A monopoly, though profitable for the company, can be very bad. Having

I hope this helps! :)

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