29
QuizMultiple Choice

The Economy of the US — Unit test

Question 29 • EA Academy Civics 9

When does a monopoly occur?

Answer
A
when there is only one company that provides a product or service
B
when companies that provide the same products are decentralized
C
when one company charges very low prices for a product or service
D
when companies producing the same product get together to set prices

Explanation

A monopoly occurs when a single company is the only provider of a product or service in a market. So the correct choice is “when there is only one company that provides a product or service.” Companies that agree to set prices together are engaging in price-fixing, not necessarily forming a monopoly.

AI-written and checked against the verified answer.