--%>

Elucidate how to maintain competition

Elucidate how to maintain competition?

E

Expert

Verified

1. Competition is the market mechanism that encourages producers and resource suppliers to respond to consumer sovereignty.

2. If producers (and/or resource suppliers) have monopoly power, the monopolist can charge higher-than-competitive prices and supplant consumer sovereignty with producer sovereignty (or economic rent).

3. If “natural monopoly” exists, government regulates price and service.  (Natural monopoly exists when technology or economic realities make a monopoly more efficient than competition.)

3. Where competitive markets are more efficient, anti monopoly laws (Sherman Act of 1890; Clayton Act of 1913) are designed to regulate business behavior and promote competition.

   Related Questions in Business Economics

  • Q : How do you account for the dominant

    How do you account for the dominant role of corporations in the U.S. economy?

  • Q : Illustrate the changes in Demand

    Illustrate the changes in Demand, Supply and Equilibrium?

  • Q : Illustrate the Optimal or best

    Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?

  • Q : Explain about the successful speculation

    Successful speculation tends to: (1) generate inflationary pressure. (2) assist stabilize relative prices. (3) reduce the incomes of the eventual producers of goods. (4) make relative prices more volatile. (5) increase the risk born through the eventu

  • Q : Gains from Exchange- Practice and

    When a world famous concert pianist is as well the world's fastest short order cook, he would most likely gain the most financially through devoting: (i) Full time to frying burgers (ii) Full time to piano practice and concerts. (iii) Half-time cooking and half-time p

  • Q : Society material wants are scarce

    Explain the foundation of economics where society’s material wants are scarce resources?

  • Q : Describe financial leverage and low

    Describe briefly high financial leverage, low operating leverage?

  • Q : Fixed or managed exchange rate

    Question: A country with a fixed or managed exchange rate would consider i.___________________ its currency to gain competitive advantage vis-à-vis its trade

  • Q : Larger amount is actually purchased at

    Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

  • Q : Real exchange rate Question: To

    Question: To determine the real exchange rate, what two pieces of information do you need in addition to the nominal exchange rate? Answer:

    Discover Q & A

    Leading Solution Library
    Avail More Than 1454391 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1926185
    Asked

    3,689

    Active Tutors

    1454391

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.