How can governments prevent monopolies?
We’ve established what monopolies are – but how do we stop them? Governments prevent monopolies and oligopolies by using anti-trust laws in markets. These stop companies from working together to form oligopolies and maintain competition in the market, such as by forcibly restricting the size of the market share that a company can own through…
What happens when one company or a group of them take control of the market? A monopoly typically occurs in a free market where competition is encouraged, and in essence, happens when a company has a large enough market share in that particular field that it can control that market, and this means they can…