Question

Which of the following can destroy a monopoly?

Answer 1

I choose letter d. a law which outlaws price discrimination.  Monopolies are known to manipulate prices to increase their profit.  This is especially true in price discrimination where they sell at different prices to different buyers just to make more.

Answer 2

Answer:

To the question of: to which of the following can destroy a monopoly, the correct answer is: A: Technology.

Explanation:

When thinking about this answer, many go to choose those actions taken by governments in order to control, or break up, the power of monopoly by companies. However, the correct answer is that technology, has become one of the greater limitations for monopolies. When thought logically, this seems unreal, as many believe that it is larger corporations, which form monopolies, who have the most access to the best technology. And this may be true. But as with everything, there is only so much advanced technology that you can access, and this is true for monopolies as well. When this limit is reached, other smaller companies slowly catch up to the bigger ones and thus, are able to establish a competition, breaking the essence of monopoly. Technology has opened up the possiblity for smaller, less powerful businesses to insert themselves as competition for corporations who form monopolies.