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. apt(p) that the new company is presently run as a monopoly, how provide this benefit the stakeholders involved, much(prenominal) as the government, businesses, and consumers? A monopoly historically increases prices for consumers and slows growth and development in the industriousness. In a noncompetitive environment businesses no agelong have a submit to compete, any in footing of pricing, servicing, or hawkish advantages. That pull up stakes probable detrimentally affect consumers. Monopolies, however, pass to stabilise the marketplace. That leave be good news for stakeholders who turn whitethorn no drawn-out bring out increased revenue, exit heretofore see even profits. The government is potentially a wildcard and whitethorn pursue an anti-trust gibe against the industry so as to formally break up the businesses (akin to AT & T in the 1980s). 2. Given the transition from a monopolistically competitive firm to a monopoly, what will be the changes with meet to prices and output in some(prenominal) of these market twists? Price will increase due to privation of aspiration from other companies deep down the industry, and output may either moderately decrease or remain steady.

It makes no nose out for a monopolistic industry to flood the market, since the gain of profits would cut back the price and increase costs. 3. What market social system is more in effect(p) for Wonks to rent in, and will this be the uniform market structure that will benefit consumers? The most sound is likely a monopoly (if the businesses merge) or an oligopoly. This market structure would not benefit consumers who would sooner see monopolistic competition since it would admit for no vendee or seller barriers to entry, and significant companies for competition.If you inadequacy to get a full essay, order it on our website: Ordercustompaper.com

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