Which of the following is an example of monopolistic activity?

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Monopolistic activity is characterized by a single entity or group exerting significant control over a market, typically to the disadvantage of competition and consumer choice. Showing preference to certain people aligns with monopolistic behavior because it suggests that a business or individual is favoring select customers over others, likely limiting access to goods or services for those not in the favored group. This kind of preferential treatment can stifle competition and lead to unfair market practices, making it a clear example of monopolistic activity.

In contrast, encouraging competition among firms, establishing a regulatory framework, and promoting open-market transactions are all actions that support a healthy competitive market environment, which is the opposite of monopolistic activity. These practices aim to create a level playing field where multiple companies can compete fairly, benefiting consumers with more choices and better pricing.

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