A monopoly exists when one business controls the sales of a service or commodity. In a capitalistic economy, monopolies are regulated by laws in order to
1)decrease the number of jobs available
2)discourage price wars among businesses
3)set prices at a given level each year
4)ensure that a certain amount of goods and services are produced each month
5)promote competition and improve product quality
i picked 4
I disagree with your answer.
In a capitalist society, competition is encouraged to reduce prices and increase the quality of goods.
so 5?
Yes. 5 is correct.
Actually, the correct answer is 5) promote competition and improve product quality. In a capitalistic economy, monopolies can have negative effects on competition and consumer welfare. Therefore, laws and regulations are put in place to prevent and regulate monopolies.
To arrive at this answer, you can analyze the options and consider their implications.
Option 1) Decreasing the number of jobs available may not be the primary goal of regulating monopolies, as it focuses more on competition and consumer protection.
Option 2) Discouraging price wars among businesses is not the main objective either. The aim is to ensure fair competition, not necessarily to control pricing strategies.
Option 3) Setting prices at a given level each year is not typically part of monopoly regulation. In a competitive market, prices are usually determined by supply and demand.
Option 4) Ensuring a certain amount of goods and services are produced each month is not the primary objective of regulating monopolies. Instead, the focus is on promoting competition and preventing market dominance.
Option 5) Promoting competition and improving product quality is the main objective of regulating monopolies. By preventing monopolistic practices, the aim is to encourage a level playing field where different businesses can compete, leading to better products and services for consumers.