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Two practices used to develop monopolies are controlling all the steps in a business process and driving out all of the competitors.

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Q: What were two practices used to develop monopolies?
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Why do monopolies exist?

Monopolies exist for two reasons: 1.) The overhead cost is to high for competition to exist. For example a power company owns all the power lines and necessary equipment to generate electricity for a city. If another company decided to compete it would need to build an infrastructure from scratch resulting in to high of an overhead. 2.) The other reason is when a single entity controls a significant amount of a market resulting in a lack of economic competition.


How did trust and mergers hurt competition?

Trust and mergers hurt competition because they help create monopolies. When two companies merge, they are no longer competitive with each other and have a size advantage over companies that were formerly competing with both of them.


Two economically unsound business practices used by corporations during the 1920s?

Buying on margin because it would only work if the demand continued to rise. Stock because if the marked crashed then everyone involved in the bank would lose their money.


What is the economic system of the Ottoman Empire?

the economic system of the Ottoman Empire consists of many key concepts. The Ottomans, like many other civilizations believed in military expansion to boost their economy. They also believed in fiscalism which is the economic theory of fiscal policy. This concept is the expenditures a government undertakes to provide goods and services. The two main practices are taxation and borrowing. Other economic strategies include traditional monopolies and conservative land holding. As the capitalist system grew in Europe, the Turks methods became less and less useful and ultimately lead to their down fall.


What are two goods that are bought and used together?

complement

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