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"

Answered by Jason H. Economics tutor

1742 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Identify two key responsibilities of a country's central bank.


On a Production Possibility Frontier diagram, indicate a point where resources are efficiently allocated (label X) and an inefficient one (labelled Y). Explain why X is efficient, why Y is inefficient and how output could be increased from both.


What are negative externalities?


Explain how price and output are determined in both the short run and long run in a monopolistically competitive market (15 marks)


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