Question

How does the regulation of monopolies and agency oversight of business practices help protect consumers?

Answer 1

A monopoly is the term for a company that controls all types of trade in a particular market. A monopoly can regulate the prices due to the fact that it has no competition. For example, it could sell an apple for $5 instead of 50¢. The buyer would then have to purchase the $5 apple because there are no other companies that sell the same product.

Answer 2

A monopoly is a great thing for a company and a terrible thing for a customer. With a monopoly, a company exercises great control over prices of a commodity, as the company owns most, if not all of the commodity.
The government breaks up monopolies. For instance, Bell Telecommunications was broken up and absorbed by AT&T and Verizon.