Question

How did monopolies affect the price of goods?

Answer 1

Monopolies would make the prices super low that competition was non existent. Since monopolies are lone providers, they can set any prices they choose. That's known as price-fixing, and they can do this regardless of demand because they know consumers have no choice.

Answer 2

How do monopolies affect the price of goods?

A monopoly contributes to price increases, leads to the creation of inferior products and discourages innovation. Monopolies inhibit free trade and limit the effectiveness of a free-market economy.