Interstate Commerce Act 1. Why is it important to control monopolies? the government has justified regulation because of the effect that monopolies have on the economy. As far as the economy is concerned, when the government controls a monopoly thus helping the economy to remain stable. When there is a monopoly, they can set their own fees with no competition, the fees can escalate to outrageous amounts. What affect do monopolies have over small businesses? When monopolies are in place, then take over smaller businesses and put them out of business. There was a time that large companies, that were in control of monopolies and a competitor would try to come into a market, the larger companies (corporations) would actually sell their products at a loss, until the smaller companies would go out of business, this is how they controlled their market. 2.
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This note was uploaded on 07/01/2011 for the course HIST 112 taught by Professor Quatrone during the Fall '10 term at Holyoke CC.