Question

Define monopoly. in capitalism, why are monopolies dangerous?

Answer 1

Definition: A monopoly is a business that's the only provider of a good or service. That gives it a tremendous competitive advantage over any other company that tries to provide a similar product.

in order for capitalism to be effective you have to have competition to control the price. if there is a monopoly, there is no competition because there is only one provider

hope this helps (:

Answer 2

A monopoly is when one company has control of majority of a certain type of product. Monopolies are dangerous because they can come after any other business that tries to produce the same types of goods that they control as well as hiking up prices and forcing consumers to pay those prices.