The correct answer is A) are believed to prevent monopolies by stopping a company from setting prices too low or too high.
Price controls are believed to prevent monopolies by stopping a company from setting prices too low or too high.
This is correct because it's the way the federal government can exert some control to inhibit powerful companies to try to create monopolies by increasing or decreasing prices in order to eliminate their competitors and establish a sole presence in the market. Otherwise, without government intervention, we would live again cases such as the Standard Oil Company of John Rockefeller or the Steel company of Andrew Carnegie.
Price controls are restrictions that are imposed to prevent monopolies by stopping a company from setting prices too low or too high.
Price controls are restrictions imposed by governments, at prices that can be charged for goods and services in the market.
Price controls are believed to prevent monopolies by stopping a company from setting prices too low or too high.
Hence, Price Controls are government-mandated minimum or maximum prices that can be charged for specified goods. These are mainly done to prevent monopolies by stopping a company from setting prices too low or too high. Option A. is correct.
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