Final answer:
A monopoly leads to an uneven playing field because it limits competition and creates barriers to entry, often resulting in higher prices and reduced innovation, ultimately disadvantaging smaller businesses and consumers.
Step-by-step explanation:
How does a monopoly lead to an uneven playing field? The answer is c) Monopolies limit competition and create disadvantages for smaller businesses and consumers. Monopolies arise when there are significant barriers to entry, which may include legal restrictions, technological advancements, natural economies of scale, or ownership of a vital resource. Once established, a monopoly can exercise considerable control over the market, choosing the output level and price for its products or services, often leading to higher prices and limited choices for consumers.
Since monopolies do not need to fear competition after a barrier to entry is established, they may become less incentive to innovate or satisfy customer needs efficiently, as Nobel Prize economist John Hicks noted. Instead, they might maintain the status quo to ensure consistent, significant profits, hence an uneven playing field is created, disadvantaging new entrants and consumers.