Final answer:
Individuals can create a monopoly through aggressive marketing strategies, market demand manipulation, and obtaining exclusive rights through patents. The United States government responds to monopolies by implementing government intervention and regulation to promote competition and prevent anti-competitive behavior.
Step-by-step explanation:
A monopoly is the control of a specific market or industry by a single individual or company. There are several ways individuals can create a monopoly, including:
- 1. Aggressive marketing strategies: By employing aggressive marketing tactics, individuals can dominate the market and eliminate competition.
- 2. Manipulating market demand: By controlling the supply of a particular product or service, individuals can create artificial scarcity and drive up prices, thereby reducing competition.
- 3. Gaining exclusive rights through patents: Obtaining patents grants individuals exclusive rights to sell a new good or service, effectively creating a monopoly.
The United States government responds to monopolies by employing government intervention and regulation, which involves passing laws and regulations to promote competition, break up monopolies, and prevent anti-competitive behavior. This includes the passing of laws like the Sherman Antitrust Act and the Clayton Antitrust Act in the late 1800s to early 1900s, which aimed to regulate key industries and break up monopolies that had formed.