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stepladder [879]
3 years ago
6

How does laissez Faire capitalism relate to the rise of monopolies? (Explain with Specific examples)

History
1 answer:
Kryger [21]3 years ago
7 0

Answer:

Adam Smith raised the problem of monopolies, which can arise under an economic system of laissez-faire. Monopolies can charge higher prices, restrict supply, and those firms with monopsony power can pay lower wages to workers. ... The principle of laissez-faire economics might work for markets without externalities.

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