There are two different views on competition. One view is that competition promotes efficiency and increases welfare. The other view is that competition results in inefficiency due to wasting resources and reduces welfare. Present a market regime where competition will incur inefficiencies and not maximising welfare. Examine this market regime and explain why competition is not beneficial. Support your answers with a suitable diagram. (Word limit: 300 not including diagram)

Rubric:

1) Name the type of market regime, define the market regime, examples of such industries, brief intro on the market regime.

2) Characteristic of the Market regime

3) Why Competition is not beneficial in the selected market regime.

4) Come out with a suitable graph

5) Explain the graph + Conclusion.