Question

Occasionally, a merger can result in the formation of a company that has total control of supply or product within the market, otherwise known as a what?

Answer 1

A merger that results in a company having total control of the supply or product within the market is known as a monopoly.

Step-by-step explanation:

A merger that results in a company having total control of the supply or product within the market is known as a monopoly.

Monopoly occurs when there are barriers preventing other firms from entering a market with a single supplier. In a monopoly market, there is only one seller but multiple buyers. The single supplier has exclusive control over the commodity or service, allowing them to manipulate prices.

For example, Microsoft was considered a monopoly in the mid-90s due to its dominating presence in the operating systems market.