9
QuizMultiple Choice

Trusts and Big Business

Question 9 • EAP-Virginia and US History A CR

Which statement is true about the relationship between a monopoly and its competition in a market?

Answer
A
Monopolies are formed when they buy out their competition in a market.
B
Competition in the market helps monopolies to develop.
C
Competition in the market ensures that monopolies charge fair prices.
D
Monopolies thrive when they have competition.

Explanation

A monopoly exists when one business controls nearly all of a market, leaving little or no competition. A company may create this position by buying out competing businesses. Competition generally limits a firm's control over prices, so it does not ensure that monopolies charge fair prices or help monopolies thrive.

AI-written and checked against the verified answer.

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