Question
Here is the question : THE EXCLUSIVE POSSESSION OR CONTROL OF A COMMODITY IS CALLED WHAT?
Option
Here is the option for the question :
- Market socialism
- Free market
- Competition
- Monopoly
The Answer:
And, the answer for the the question is :
Explanation:
Natural competition is assumed to generate the greatest results for consumers in the United States’ mixed market economy and free market principles. However, monopolies arise when a single company becomes so entrenched in a market that no other competitors can compete. To prevent monopolies from dominating the market and to encourage healthy competition, the United States has antitrust laws.
A monopoly is a situation in which a single company or individual has exclusive possession or control of a particular commodity or market. This can occur for a variety of reasons, including natural barriers to entry, government regulation, or deliberate anti-competitive practices by a company.
Monopolies can have a range of effects on the economy and society. On the one hand, they can lead to higher prices for consumers and reduced innovation, as the monopolist has little incentive to improve their products or reduce costs. Additionally, monopolies can limit consumer choice and reduce the competitiveness of the market.
On the other hand, monopolies can also lead to economies of scale and other efficiencies that can benefit consumers. For example, a company that has exclusive control over a particular market may be able to invest in research and development that leads to new and innovative products. Additionally, the monopolist may be able to use their market power to negotiate lower prices from suppliers, which can result in lower prices for consumers.
most economists agree that they are generally harmful to the economy and society as a whole. This is because monopolies can lead to reduced competition, which can in turn lead to higher prices and reduced innovation. Additionally, monopolies can lead to a concentration of wealth and power in the hands of a small group of individuals or companies, which can have negative effects on democracy and social cohesion.
To address the negative effects of monopolies, governments may use a range of policies and regulations. For example, antitrust laws may be used to prevent companies from engaging in anti-competitive practices such as price fixing or collusion. Additionally, governments may use regulations to prevent companies from engaging in activities that are harmful to consumers or the environment.
a monopoly is a situation in which a single company or individual has exclusive possession or control of a particular commodity or market. While monopolies can have some potential benefits, most economists agree that they are generally harmful to the economy and society as a whole. To address the negative effects of monopolies, governments may use a range of policies and regulations to promote competition and protect consumers.