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

D

anonymous · Answer

Yes D is correct. The characteristics of a monopoly market structure are: 

- One dominating firm
- Very high barriers to entry and exit
- Usually a unique good

And because of this, monopolies are capable of making abnormal profits. |dw:1330811051062:dw|