Final answer:
The correct answer is d) They concentrate economic power and limit competition. Megamergers and interlocking directorates can lead to reduced competition and market concentration, which may result in higher prices and less innovation, disadvantaging consumers in the process.
Step-by-step explanation:
In addressing how megamergers and interlocking directorates contribute to monopolistic capitalism, the correct option is: d) They concentrate economic power and limit competition. Megamergers refer to the merging of two or more large corporations, typically creating a single entity with a significant market share. This can reduce the level of competition in the market, leading to higher prices and potentially less innovation, as the newly formed entity may not have to compete as fiercely to maintain its customer base. Interlocking directorates, where board members of one company sit on the boards of competing companies, can lead to anticompetitive practices and collusion, which may further reduce market diversity and competition.
While some mergers may allow firms to operate more efficiently, they can also create market concentration and reduce competition. Likewise, the presence of interlocking directorates may stifle competition by fostering a cooperative environment amongst supposed competitors rather than a competitive one. These outcomes are contrary to the interests of consumers who tend to benefit from competitive markets with diverse options and innovative offerings.