Perfect Competition V. Monopolies :: essays research papers

     In the American Economy, business is controlled by the g all overnment and the consumer. When a person is the possessor of a business that is alone in its product that it provides for the consumer, it is said to be a monopoly. As a monopoly you have sole control over price. Monopolies are regulated by the politics in order to counter the misuse of power that a monopoly has.     If a person can but get turkey, for example from one store. Then the store can tear down a lot more for that turkey than it could if the store next brink was selling it too because then at that place would be competition. Also, the store would non have to produce a better quality of turkey because there would be no reason for it to do so. In this situation the consumer is taken unfair advantage of by the business owner, in this case the store. government activity regulates monopolies to promote a perfect competition rescue and to get unloose of the tur key situation discussed above. The gain grounds of a perfect competition economy benefit consumers. For example, if we go back to the store, in a perfect competition economy all of the stores have turkey. Now the stores want to make sure that the turkey that they sell is the best turkey and cost the least. In this situation they are competing for the consumers business.However, business owners of a monopoly situation disagree with the government. When there is a business that has the potential to become a monopoly the government watches it very nigh and the business has to go through the government for mergers and such. The more the business becomes a monopoly, the more the government says no to the businesss requests. For example, there is Microsoft. The government has been working to keep Microsoft from being the big business that it is today.