Why do goverments often regulate buisness in a capitalist society

Social Studies

1 answer:

ella [17]3 years ago

5 0

Answer:

To prevent monopolies and oligopolies in economies.

Explanation:

Monopolies are organizations that have almost entire control of markets. <em>If I ran a monopolistic oil company in the US, I could in theory control the cost of oil by raising it higher/lower than any competitor and charge lots of households many more had there been competition.</em>

Oligopolies are organizations that work together to cut out competition, with the exception of the corporate ally. <em>If my buddy and I ran an oligopoly on oil, we would have control of the entire market together and control the costs of oil, in theory.</em>

Hope that helps, best of luck!

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