Why is Competition Good?

Firms have to be competitive in order to keep profits up and to remain in business. If they didn’t keep prices low then other firms could enter the market and undercut the incumbent firm, thus taking away its market share and supernormal profit. Alternatively rivals may do the same. These low prices benefit consumers and Read more about Why is Competition Good?[…]

Discuss whether a concentrated market is necessarily anti-competitive

Here is an essay we were set for class. As always feel free to leave any feedback below. A concentrated market (one in which there is a high value for the n-concentration ratio) is a market in which there are few firms which possess a relatively large market share. ThisĀ fulfilsĀ one of the criterion of an Read more about Discuss whether a concentrated market is necessarily anti-competitive[…]