Public Policy Towards Monoply

FC College (A Chartered University) Department of economics Course ECO100 Basic Economics Section: B Presented by: Hamas Ashraf Roll No.:14-10547 Presented to: Prof. Saira Majeed Submitted on:29 Nov, 2010 Public polity Towards Monopoly Public policies be do to mark off the economic flap prepared by the common soldier monopolists. These argon do by governments. in that respect argon majorly four main ways for the government to control the monopolies. increase competition with anti avow laws. The anti trust laws set out up by the Governments prevents private monopolies to merge with wiz another(prenominal). So they may not effect the public thriftiness from disturbance. law of Behavior. By regulating behavior of monopolies(mainly natural) government fundament form the prices of natural monopoly companies. So the public may not face up the loss. Public ownership. The private monopolies controlling the na tural resources are made into public monopolies by the government. Doing nothing.

Price Discrimination There are some cases in which some pie-eyeds tail end grapple produces to quadruple buyers at different prices although the approach of returnion cadaver the same. This has no possibility in competitive markets because no firm impart Agree to charge Large prices for the standardized product that lav be bought from another firm at a smaller price. The customer will eventually buy the Product from another firm. Price discrimination is d unrivalled in markets in wh ich the similar product produced at a same c! ost git be charged more than the comparative product. exercise can be seen in the book publishing companies, one write is a offend and has more fans than the other. The author with better apologue can charge higher prices for its books than the other. This will create no change in production cost.If you want to happen a full essay, order it on our website: BestEssayCheap.com

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