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Exclusive control by one group of the means of producing or selling a commodity or service
There is one of that product/service so they can charge what ever they want with out worrying about competitors.
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∙ 14y ago
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Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
What MIGHT be the purpose of government regulation of natural monopolies or economies of scale?
Government regulation might be used to facilitate competition.
Examples of industries that benefit from economies of scale?
Hydroelectric plants.
What is an essential government role in market economies?
to prevent monopolies and collusion (plato)
Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
What MIGHT be the purpose of government regulation of natural monopolies or economies of scale?
Government regulation might be used to facilitate competition.
How would you describe natural monopolies?
When private firms gain monopoly power, usually because of economies of scale, they are in a position to restrict production and raise price with little worry of competition; these are known as natural monopolies.
Examples of industries that benefit from economies of scale?
Hydroelectric plants.
Why can an industry that enjoy economies of scale easily become a natural monopoly?
Average costs drop as production rises. This is why natural monopolies are possible.
Why are industries regulated to prevent monopolies?
If one company were to become a monopoly then consumers would not have a choice as to who to give their money to. Consumer choice and competition are cornerstones of capitalist economies, and to preserve them we must put measures into place that prevent the rise of monopolies.
Describe three ways that European powers strengthened their economies in the 1500s and 1600s?
European powers adopted the policy of mercantilism by which colonies existed for the benefit of the parent country. Europeans regulated trade with their colonies, sold monopolies to industries or trading companies, and imposed tariffs to protect their industries from competition.
What is an essential government role in market economies?
to prevent monopolies and collusion (plato)
Why do governmental laws seek to restrict monopolies and cartels benefit consumers and businesses?
To prevent inflation growth.
What is large firm?
large firm means when a business has expand in order to benefit from economies of scale
What Benefit(s) from large economies of scale in which the costs of goods decrease as output increases.?
perfect competition
