Question: Using real-world examples, discuss the possible risks involved when a market is dominated by one or a few very large firms.

Using real-world examples, discuss the possible risks involved when a market is dominated by one or a few very large firms.

Step by Step Solution

★★★★★

3.40 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

When a market is dominated by one or a few very large firms it can lead to several risks and negative consequences Limited competition With fewer play... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics 14th Global Questions!

Carla Vista Corporation has collected the following information after its first year of sales. Sales were $1,770,000 on 118,000 units; selling expenses $295.000 (40 % variable and 60% fixed); direct...

MCMPC is facing a unique situation in a market that has evolved significantly. It is in Orange and Sullivan Counties. It faces a significant challenge. How will it compete effectively in a market...

Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...

A Predominantly Automated Financial World Quite obviously, the development of robots and AI machines is changing the world we are living in today. Our society is becoming more reliant on automated...

PPA 500- to 1,000-word report on the ethical implications of trade restrictions (quotas, tariffs, etc.). The following bullets include some words that are in blue -- use these words as first-level...

1. Explain how the price mechanism reallocates resources when there is a decrease in the supply of a good. 2. Explain the view that the best allocation of resources occurs when consumer surplus and...

Question 5-10 please THE FOLLOWING INFORMATION RELATES TO QUESTIONS 5-10 Bubs Candies Case Scenario Andrew Bubs is the founder and owner/operator of privately held Bubs Candies Company (BCC). BCC...

question 5-10 please THE FOLLOWING INFORMATION RELATES TO QUESTIONS 5-10 Bubs Candies Case Scenario Andrew Bubs is the founder and owner/operator of privately held Bubs Candies Company (BCC). BCC...

question6 please THE FOLLOWING INFORMATION RELATES TO QUESTIONS 5-10 Bubs Candies Case Scenario Andrew Bubs is the founder and owner/operator of privately held Bubs Candies Company (BCC). BCC...

Can someone please assist me with the first section of this?The case study provides very general information and I want to make sure that I get the foundation for the rest of the paper correct!!Thank...

In this milestone, you will draft the remaining subsections of Section III (I and J) as well as Section IV of the final project regarding the fraud case Crisis atthe Mill: Cash Flow Forecasting...

1. If you owned and opened three restaurants after you graduated, would you operate from a functional or divisional structure? Why? 2. In your opinion, what approaches to conflict resolution would be...

The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: a. Use graphical sensitivity analysis to determine the range of...

Conner currently requires investments to meet a rate of return on asset investment of 5 % . Which division has the greatest level of residual income ?

She owns a $100,000 ordinary life insurance policy with a waiver-of-premium provision, guaranteed purchase option, and accelerated death benefits rider. Kathy has several financial goals and...

Refer to the payoff matrix below Assuming this is a sequential game with no collusion, what is the outcome if Firm A moves first to build a new type of commercial aircraft? Explain why first-mover...

Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and 100 winning the jackpot....

What is meant by technological advance, as broadly defined? How does technological advance enter into the definition of the very long run? Which of the following are examples of technological...

On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: 2022 Retail Cost...

The following income statement was drawn from the records of Ethan Company, a manufacturing firm: Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the...

Free cash flow is the available cash after ________ have been paid. shareholders, creditors, and taxes operating expenses, creditors, and taxes operating expenses, taxes, and shareholders creditors...