Question

What were two practices used to develop monopolies? a) controlling all the steps in production and limiting transportation distances b) controlling all the steps in a business process and driving out all the competitors c) charging tariffs for crossing state lines and limiting transportation distances d) driving out all business competitors and charging tariffs for crossing state lines.

Answer 1

Correct answers are b and d.

Step-by-step explanation:

The monopoly refers to an explicit market situation, in which a single producer or a seller exploits and control the offer of a good and service, which gives it absolute power and serves it as a privilege. The monopoly is a form of market where a single company is the only one that offers a certain good or service, completely dominating the offer of the market, consumers to acquire the good, must go to the monopolist and accept the conditions imposed by it.

Answer 2

The two practices that were more used to develop monopolis are:

d) driving out all business competitors and charging tariffs for crossing state lines.

Step-by-step explanation:

Building a monopoly is illegal in many countries, however, certain strategies worked to establish them without breaking major rules. Driving out all business competitors was the most common technique, the tools that were used were the cost of goods and aggressive prices. However, illegal moves against the business were also performed. The second strategy was charging tariffs for crossing state lines, this still prevails we call them importation taxes and are applied to foreign goods to protect the local producers and help them develop.