describe the concepts of monopoly and collusion in a market economy. give five examples of monopolies and collusion among sellers and their effects on the market economy.

Monopoly : has one supplier of a product. The seller here has market power and can control both price and quantity

Collision: when competing firms make a secret agreement to try to control a market. Collusion (practiced by cartels) is illegal in the United States. It reduces the level of competition in a market. Is more difficult in markets with large numbers of buyers and sellers.

Monopolies and collusion among sellers:
eliminate competitionIn industries with less competition, prices are likely to be higher