The goal of all capitalists is to dismiss the competition, Ask an Expert

Economics

The goal of all capitalists is to dismiss the competition and gain market power.

a) Explain why that might be hurtful for the economy, though not for everybody, clearly stating who wins and who loses in the presence of monopolies.

b) What can be done about monopolies? Explain some of the possible policy responses by the government and why some might be more appropriate than others in certain context.

c) But do we have to do anything? Explain Schumpeter's theory of creative destruction and how the economy can be seen as a succession of monopolies.

d) What about a situation where there are a couple of firms (an oligopoly). Is that likely to generate a similar outcome to that of a monopoly? Why or why not?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9491834

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question why do prices in monopolistic competitive markets

Question: Why do prices in monopolistic competitive markets remain above the prices that would exist in perfectly competitive markets even in the long run after entry has eliminated above normal profits? The response mus ...

Question the american recovery and reinvestment act of 2009

Question: The American Recovery and Reinvestment Act of 2009 (ARRA) was passed by President Obama and Congress in response to the recession of 2007-2009. The primary components of this bill included tax cuts and increase ...

Question a what is meant by market segmentationb what are

Question: a) What is meant by Market segmentation? b) What are the six main causes of market segmentations? c) What are the main disadvantages for a firm to be located in a segmented market? The response must be typed, s ...

Question how does having effective performance

Question: How does having effective performance methodologies allow a firm to adequately measure economic performance? What is the role of an effective transfer pricing methodology in allowing effective performance measu ...

Question the cost of maintaining a new care is estimated at

Question: The cost of maintaining a new care is estimated at $295 the first year and to increase by $50 each year thereafter. How much should be set aside for maintenance, if the car is to be kept 10 years and if the mon ...

Question you can transfer your health data to another

Question: You can transfer your health data to another personal health record provider such as Microsoft HealthVault. What privacy issues are involved? Express your views on using this type of system, make sure to includ ...

Question please use the american psychological association

Question: Please use the American Psychological Association style writing format for referencing your sources. Reference Librarians at each campus of the college can also help you with this. Recommended website: Purdue U ...

Question australian are considered generally under-insured

Question: Australian are considered generally under-insured (from a personal insurance perspective). Discuss what this statement means and what are your views on how this can be addressed. The response must be typed, sin ...

Question 1 given the current state of the economy what

Question: 1. Given the current state of the economy, what should Fed. Do with monetary policy and why? 2. Compare the pros and cons of independent central bank? 3. Compare pros and cons of monetary rule and discretionary ...

Question what is the peter principle why does it occur and

Question: What is the Peter Principle? Why does it occur and what are some of the consequences? What are some ways to avoid these undesirable outcomes (hint, in class we had three methods to resolve problems internal to ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert