Perfect competition is our paradigm. If there is lots of competition, there is little (if any) need for government regulation, at least according to Adam Smith. Yet, we have much regulation to stop practices that try to exert monopoly power.

Use information about monopolies and oligopolies (especially barrier to entry materials) to explain how we got to a point that we don't have perfect competition, and believe we need some degree of regulation.

Your answer should incorporate the various laws regulating industry concentration, and the Supreme Court's relevant historic decisions.

Answer rating: 100% (QA)

A perfect competition is one where competition is at the greatest level It is characterized by a large number of buyers and sellers who have perfect information about the goods and services being offe... View the full answer