Which of the following would NOT limit the power of monopolies? A. consumer demand B. potential competition C. consumer supply D. government regulation

Potential competition would not limit the power of monopolies.

Explanation:

The potential competition would not limit the power of a monopoly. In the case of monopoly there is no competition. There is the only single seller selling the product. No other firm can enter the industry. That is why the monopoly exits.

The Monopolist can easily prevent the competition as no other firm sells the same product. Monopolist sells unique products that cannot be copied. Uniqueness is the biggest advantage of monopoly.

The Power of the Monopolies is not limited by the Potential competition that exist in the Market Place.Since their is a single seller of the product

Explanation:

A monopoly market is characterized by the presence of  the sole/single  seller of the  product, and the absence of any close  substitutes.

Some examples of  a Monopoly firms are : Microsoft and Windows, DeBeers and diamonds are few to mention

The four key characteristics of monopoly are:

(1) A single firm catering to the whole  market

(2) A unique product,no close substitutes available

(3) Restrictions on entry of the new Players and exit of the existing Players

(4) Technological Specialization :-specialized information about production techniques unavailable to other potential producers

So ,we can say that it is correct to say that the Power of the monopolies is not Limited by the existence of the potential competition

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