--%>
Assignment Help - homework help

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 : Demand for bagels rises dramatically

    Explain the demand for bagels rises dramatically while the demand for breakfast cereal falls?

    		•
  • Q : Depreciation of the euro change the

    If the European euro declines in value (depreciates) in the foreign exchange market, would it be easier or harder for the French to sell their wine in the United States?  Suppose you were planning a trip to Paris.  How would the depreciation of the euro chan

    		•
  • Q : Answer the following questions based on

    The dataset used in this question contains data on 180 economics journals for the year 2000. The variable descriptions are as follows: logoclc - log of the number of library subscription loglibcit - log of the library subscription price per citation.

  • Q : Assertion to increase in the minimum

    Use the circular flow model to confirm this assertion for a $1 per hour increase in the minimum wage?

    		•
  • Q : Explain the behavior of the workers Use

    Use the economic perspective to explain the behavior of the workers?  Why do they work so diligently?

  • Q : Who will get the goods and services Who

    Who will get the goods and services?

    		•
  • Q : Productive capacity After the Spanish

    After the Spanish found the new world, they promptly began to plunder this. They imported huge amount of gold and silver to Spain. It inflow of bullion caused a rapid increase in inflation, that would have grave consequences for Spain. It is quick inflation made this

    		•
  • Q : Wealth of Nations - pioneering survey

    The Wealth of Nations that a pioneering survey of economic treated was published within: (1) 1849 year, and written by Karl Marx. (2) 1936 year, and written by John Maynard Keynes. (3) 1776 year, and written by Adam Smith. (4) 141 BC,

    		•
  • Q : Illustrate and clarify the economizing

    Illustrate and clarify the economizing problem?

    		•
  • Q : Eco Quantity TR TC 0 $0.00 $10.00 1

    Quantity TR TC 0 $0.00 $10.00 1 $150.00 $30.00 2 $290.00 $50.00 3 $420.00 $80.00 4 $540.00 $120.00 5 $650.00 $170.00 6 $750.00 $230.00 7 $840.00 $300.00 8 $920.00 $

    		•