What is the primary threat of monopoly and oligopoly to the public interest?
A)Cartels
B)Predatory pricing
C)Price wars
D)Monopoly power

Question

What is the primary threat of monopoly and oligopoly to the public interest?
A)Cartels 
B)Predatory pricing 
C)Price wars 
D)Monopoly power

Quizplus · Accepted Answer

Monopoly power allows a company to restrict output and raise prices, which can harm consumers through reduced choice, higher prices, and potentially lower quality products or services. Oligopolies can also lead to collusion and cartel behavior, further reducing competition and potentially raising prices. Predatory pricing and price wars may harm smaller competitors, but may also benefit consumers in the short term through lower prices.

What Is the Primary Threat of Monopoly and Oligopoly to the Public