The neoclassical tradition in economics has put a huge emphasis on the benefits of competition. Only the perfectly competitive market structure reliably produces both productive and allocative efficiency (measures of static efficiency). Any of the imperfectly competitive market structures are generally viewed as a fall from grace. All are described as statically inefficient, it is just a matter of degree. Typically, we bemoan the movement toward a monopoly, and often invoke antitrust law to prevent it. If you were given a choice would you be willing to live in a world of perfect competition? Put another way, are there reasons to prefer imperfect competition (Monopolistic Comp., Oligopoly, and Monopoly)? Can you think of anything that you currently consume/use that is a product of a large oligopolist...Do you think it would even be possible for a perfectly competitive industry to have created it?
The neoclassical tradition in economics has put a huge emphasis on the benefits of competition. Only the
If you were given a choice would you be willing to live in a world of perfect competition? Put another way, are there reasons to prefer imperfect competition (Monopolistic Comp., Oligopoly, and Monopoly)? Can you think of anything that you currently consume/use that is a product of a large oligopolist...Do you think it would even be possible for a perfectly competitive industry to have created it?
If you are struggling with this topic, then search the web for "dynamic efficiency" and "creative destruction". Both will probably give you some ideas to shape your response.
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