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

1912 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Integrate the function f(x) = (1/6)*x^3 + 1/(3*x^2) with respect to x, between x = 1 and x = 3^(1/2), giving your answer in the form a + b*3^(1/2) where a and b are constants to be determined.


What is the best method of structuring an Economics Essay


What is the Laffer curve?


To what extent is a market contestable?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning