Answer:
The companies can have a monopoly on the market and raise prices without fear of losing demand.
Explanation:
When one or two companies control a market, they can have a monopoly on the market and raise prices without the fear of losing demand.
Monopoly occurs when a single seller controls the supply in a market. In such a situation, only this seller controls the production of the goods and services. So, they are at liberty to set the price to whatever they intend.
This sort of market operation leads to creation of a monopoly. The two suppliers can agree to regulate production and then set prices to that which help them maximize profit.
