Question

How do monopolies affect the price of goods? Monopolies always result in higher consumer prices. Monopolies always result in lower consumer prices. Monopolies have no effect on the cost of goods. Monopolies can lower and raise their prices at will.

Answer 1

Answer:

Natural Monopolies can Reduce Costs

When monopolies are privately owned by for-profit organizations, prices can become significantly higher than in a competitive market. As a result of higher prices, fewer consumers can afford the good or service, which can be detrimental in a rural or impoverished setting.