Economics question Considering your previous knowledge of monopolies and the nature of competition; how do monopolies hinder competition and why is it important for governments to take steps to limit this business practice? Please provide at least two examples. (6pts)

Textbook pages: (151–154)

Monopolies hinder competition because by definition, they are anti-competitive.

Explanation:

A monopoly is a firm that is the sole provider of a good for which there are no close substitutes.

Monopolies charge higher prices than they would in a competitive enviroment, and for this reason, they benefit the monopoly at the expense of the consumers.

Governments can set several policies to reduce monopoly power. One policy is simply to prohibit monopolies from forming, which is the case for most industries in developed nations.

Another policy is to simply take over the monopoly, and make it a public enterprise, so that the extra economic benefits of the monopoly are shared with the people (at least in theory).

the buddha identified ways to end suffering and attain minerva, which is the ultimate goal of buddhism. for this purpose, he came up with the concept of the four noble truths, which were crucial to ending suffering. the last of these truths stressed following the eightfold path , which is a series of steps that allow you to live life in a proper manner. these steps would make sure that you would follow the or live life in moderation.

the eightfold path has 8 practices which are: