Politics

Question

What was the problem with monopolies and how did Adam Smith propose this

problem be fixed?

Answer

The problem with monopolies was that they allowed a single entity to control the market and set prices, leading to higher prices and reduced competition. Adam Smith proposed that the government should regulate monopolies and break them up into smaller, more competitive entities.

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Adam Smith, the father of modern economics, argued that monopolies were a major problem in the economy. He argued that monopolies allowed a single...