Question

Write two ways that the free enterprise system works to break the three powers noted of monopolies (Higher prices, Barriers to entry,and Reduced Competition).

Answer 1

1 price for monpoly is $30.00 for a $1.00 soda
and another one is $50.00 for a $10.00 pizza

Answer 2

1. Free enterprise system can pressure the government to reverse its law from supporting monopoly

2. Consumers can create competitors or collectively create alternatives. Since there is no profit without sale. The Company monopolizing the market will be forced to reduced it price to favour consumers examples of former monopoly are AT&T and Standard Oil in the U.S.

Step-by-step explanation:

Monopoly is when a private organisation / government institution controls the price of a commodity and dominate the market share of a singular commodity.

1. Free enterprise system can pressure the government to reverse its law from supporting monopoly

2. Consumers can create competitors or collectively create alternatives. Since there is no profit without sale. The Company monopolizing the market will be forced to reduced it price to favour consumers examples of former monopoly are AT&T and Standard Oil in the U.S.