Question

Use what you have learned about monopolies to complete the following sentences.

Monopolies
competition in the market.

In a
monopoly, a producer controls the market because it is able to meet the demands of all consumers.

In a
monopoly, a producer controls the market by the authority of the government, and private production cannot take place.

In a
monopoly, a producer controls the market by holding a patent on the process of creating a specific good.

Answer 1

Monopolies reduce competition in the market.

In a natural monopoly, a producer controls the market because it is able to meet the demands of all consumers.

In a government monopoly, a producer controls the market by the authority of the government, and private production cannot take place.

In a technological monopoly, a producer controls the market by holding a patent on the process of creating a specific good.