What was the effect of the growth of monopolies?
A) They increased competition among similar businesses.
B) They reduced the need for government intervention.
C) They spread equal wealth among the entire population.
D) They reduced the number of small businesses within an industry.

Question

What was the effect of the growth of monopolies?
A) They increased competition among similar businesses.
B) They reduced the need for government intervention.
C) They spread equal wealth among the entire population.
D) They reduced the number of small businesses within an industry.

anonymous · Answer

I'd go with D for the following reasons: 

A) When a monopoly's hold over an industry grows, anyone else trying to compete in the same business usually get squeezed out. That's what makes a monopoly unfair. It reduces competition.

B) Monopolies would actually increase the need for government intervention since legislation would be needed to fight them.

C) They certainly didn't spread wealth to everyone; a monopoly exists only to dominate an industry and focus that wealth onto itself.