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A market structure in which a few large sellers dominate and have the ability to affect prices in the industry is called a monopoly.​

a. True
b. False

1 Answer

1 vote
This is a true statement.

The tyrannical rule of a few corporations over an industry is called a monopoly. Monopolies decrease variation in an industry and place all products in the control of one company. This results in the ability to change prices and regulations at will, and one company getting all of the profit from many companies. An example of a monopoly in today’s businesses and industries would be Disney. Since Disney owns many television and movie production companies, very few remain out of Disney’s grasp, especially after acquiring 20th Century Fox. Disney’s power over the visual entertainment industry could be described as a monopoly.

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