35
QuizMultiple Choice

The Economy of the US — Unit test

Question 35 • EA Academy Civics 9

Which scenario describes a monopoly?

Answer
A
Company X and Company Y both produced farm tractors. Company X bought Company Y, making the merged company the largest supplier of tractors in the Midwest.
B
Berry Gordy Jr. founded Motown Records in 1959. Over time, the Black-owned business became one of the most success independent record labels.
C
In the late 1800s, Carnegie Steel controlled the steel supply in the United States. This allowed the company to set prices for steel throughout the United States.
D
A large supermarket chain moved into a neighborhood and offered low prices. Unable to compete, the neighborhood’s small independent grocery store closed.

Explanation

A monopoly exists when one company controls nearly all of the supply of a good or service and can influence its price. Carnegie Steel controlled the steel supply across the United States and could set steel prices, so choice C describes a monopoly. The other scenarios describe a merger that made a company the largest regional supplier, a successful record label, or a supermarket driving out a local competitor—not control of an entire market.

AI-written and checked against the verified answer.

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