If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for concern about the extent of competition new ways of pleasing customers taking advantage of economies of scale regulatory recapture

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22-05-2018
Business

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If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for concern about the extent of competition new ways of pleasing customers taking advantage of economies of scale regulatory recapture

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MrsTriplet MrsTriplet · Answer 1 · 2018-06-01T01:07:28+02:00

If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for concern about the extent of competition. In a monopolistically competitive market, products are differentiated by brand and quality but are not perfect substitutes due to this. Perfect competition is basically a theoretical market because the criteria to qualify has a perfect competitive market is hard to meet. The firms all set the price of their product and the market does not have any influence over it.