Describe
monopoly.
Answer: A monopoly exists when an industry or market
has only one producer. The sole supplier enjoys complete control over the
prices of its products. Its only constraint is a decrease in consumer demand
due to increased prices. In the United States, the Sherman Antitrust Act and
the Clayton Act forbid many monopolies and regulate prices charged by natural
monopolies.
Source: Business Essentials, 8e (Ebert/Griffin)
– Global Edition
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