A Company holds a monopoly of selling shoes. What effect doe the monopoly have on the customer A) The prices are higher B) The prices are lower C) Supply decreases D) Supply Increases

A) The prices are higher.

C) Supply decreases

Explanation:

I'm not sure if this question is supposed to have two answers? I believe both A and C could apply to the situation, however.

A monopoly exists when a specific person or enterprise is the only supplier of a particular good. This means that the supply of that good would decrease, due to the fact there is only one supplier. Because of the decrease in supply and the lack of competition, it also means the prices of the good would be higher than if there were multiple suppliers.