Consumers are bear on by monopolies because of price fixing. They are paying higher prices for a product because no one else is selling this product. This lowers social wellbeing.
Regulation on monopolies is challenging but has improved in the modern decades. The policy isnt specific on what exactly is illegal. If taken literally, then all businesses would be monopolies. There has to be a smoking gun in order to get a conviction.
Monopolies can have negative long term effect on businesses. It decreases performance from lack of challenges and competing with rival businesses. Output is change magnitude because of content with current profits. Productivity is affected as well. timbre of product goes down from lack of innovation.
The laseizz-faire approach seems to be a good fit. The Chicago school of thought has it right. Let the businesses compete and the consumer will win. Strict regulations of monopolies will lead to inefficient businesses. The merchandise tends to repair itself with time.
Government intervention never seems to work disclose well for anybody.
2. Government improves social welfare by providing us with clean water, public schools, public transportation, police officers providing safety, maintaining the roads we lead on and much more.
Government deviates from maximizing social welfare by having special interests. A government official may be bribed by lobbyists or interest groups to build a road or school or invest impose payers bills into a new project. This money could go towards the needy or homeless or support low income families. Because of special interests groups, the government may impose sanctions on businesses that rival the special interest groups, thus...If you want to get a full essay, order it on our website: Ordercustompaper.com
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