Evaluate the view that governments should always prevent firms from being monopolies.
Economics-Essay
Dec‘08
Evaluate the view that governments should always prevent firms from being monopolies.
Monopolies are not good for us people because in a monopoly there is often just one firm leading. If only one firm is leading the firm tells us consumers what we have to pay for the product we need because the firm in the monopoly can decide the price. It can decide the price because it does not have any competitors for a price competition. Of course the firm cannot set any price they want but the firm does not have any competition and so there is no price war.
A monopoly has for example the local corner shop in a small village where are to less people for a big supermarket chain. So the corner shop has no competition and can decide what he wants to have for different things the people need. But often a local corner shop does not play on his position and the prices are consumer friendly.