Should the government stop firms from getting too big?

First, define some termsMonopoly: when there is only one firm in the entire marketPerfect Competition: when there are many buyers and sellers in the marketThen, answer the question by describing the pros and cons of both Monopoly and PC. (remember to draw diagrams)Monopoly Pros: Gain economies of scale, gain international competitiveness etcMonopoly Cons: Diseconomies of scale, worsen consumer surplus, worsen quality etcPC Pros: Achieves allocative and productive efficiencyPC Cons: No E of SFinally, write your judgement and make evaluations using "it depends"

JH
Answered by Jason H. Economics tutor

1778 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the difference between static and dynamic efficiency?


Explain how changes in prices allocate scarce resources in a market economy [12 marks]


What factors affect supply of a good or service?


What are the main tools to used to meet the key economic objective of ecomic growth?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences