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How Does a Monopoly Affect Prices and Choices for Consumers?

A monopoly happens when one company has complete control over a market for a specific product. This can affect prices and choices for shoppers in a few ways:

  1. Higher Prices: When there’s no competition, monopolies can charge more money. For instance, if only one company sells ice cream, it might charge 5insteadofalowerpriceof5 instead of a lower price of 3 when there are other brands.

  2. Fewer Choices: People may not have many options. Instead of picking from lots of flavors from different companies, a monopoly might only have one or two flavors to choose from.

  3. Innovation Possibilities: Even though monopolies might not seem eager to create new products, they could spend more money on research and development because they have a lot of money.

In short, monopolies can limit what people can buy and usually lead to higher prices.

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How Does a Monopoly Affect Prices and Choices for Consumers?

A monopoly happens when one company has complete control over a market for a specific product. This can affect prices and choices for shoppers in a few ways:

  1. Higher Prices: When there’s no competition, monopolies can charge more money. For instance, if only one company sells ice cream, it might charge 5insteadofalowerpriceof5 instead of a lower price of 3 when there are other brands.

  2. Fewer Choices: People may not have many options. Instead of picking from lots of flavors from different companies, a monopoly might only have one or two flavors to choose from.

  3. Innovation Possibilities: Even though monopolies might not seem eager to create new products, they could spend more money on research and development because they have a lot of money.

In short, monopolies can limit what people can buy and usually lead to higher prices.

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