Price controls are a. believed to prevent monopolies by stopping a company from setting prices too low or too high
b. made by governments with a purpose of discouraging competition in the economy
c. set prices for goods and services that only government-approved businesses may offer
d. a system of government laws and regulations that control how people run their businesses

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.