Author Question: Countries like South Korea and China that were previously colonized by foreign powers have achieved ... (Read 57 times)

Davideckstein7 · **on:** Jul 8, 2018

Countries like South Korea and China that were previously colonized by foreign powers have achieved great economic development because________.

A. they were the early formed states that established sovereign authority over the
territory
B. they changed their political institutions and strengthened the political role of the
state in the economy
C. they changed their culture to adopt the institutions that were left behind by their
colonizers
D. they had abundant natural resources that helped in the growth of the economy
E. they adopted a free market approach to the economy

Question 2

What is a monopoly? Why is monopoly considered as a market failure?

What will be an ideal response?

efwsefaw · **Reply #1 on:** Jul 8, 2018

Answer to Question 1

B

Answer to Question 2

A monopoly is a situation in which a single firm controls the production, distribution, or sale of a particular product, which forces all others out of business and prevents new competitors from entering the market. A monopoly is a market failure, because in the absence of competition, one firm can set prices for its product above what a competitive free market would allow. Under these circumstances members of a society are limited in their access to that product or service and when this occurs, the monopolistic firm profits, but consumers lose.