Analyzing the scenario, the new and the large company can control all prices and services provided, generating a monopoly situation.
<h3 /><h3>What is monopoly?</h3>
It is a market situation where a company controls the market, being the entity responsible for establishing the price for a good or service, characterizing a situation of imperfect competition.
Therefore, in the monopoly market, consumers are harmed because they do not have the right to choose which products or services they want to consume, in addition to the fact that the price charged may be higher in a situation of perfect competition.
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Answer:
Ccccc
Explanation:
Journal entries
Apr. 1
Dr Cash 18,360
common stock 18,360
Apr. 1
No entry
Apr. 2
Dr Rent expense 918
Cr Cash 918
Apr. 3
Dr Supplies 1,326
Cr Accounts payable 1,326
Apr. 10
Dr Accounts receivable 1,938
Cr Service revenue 1,938
Apr. 11
Dr Cash 714
Cr Unearned service revenue 714
Apr. 20
Dr Cash 2,856
Cr Service revenue 2,856
Apr. 30
Dr Salaries and wages expenses 1,532
Cr Cash 1,532
Apr. 30
Dr Accounts payable 306
Cr Cash 306