The difference between the two ways of beating competition. Concept introduction: Competition in a market: It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers. Explanation: Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws. When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare. On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm. Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 1DQ

To determine

The difference between the two ways of beating competition.

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Explanation:

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Expert Solution & Answer

Explanation of Solution

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Economics Concept Introduction

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Summarise the case for government intervention in the education market

Should Maureen question the family about the history of the home? Can Maureen access public records for proof of repairs?

3. Distinguish between a direct democracy and a representative democracy. Use appropriate examples to support your answers. [4] 4. Explain the distinction between outputs and outcomes in social service delivery [2] 5. A R1000 tax payable by all adults could be viewed as both a proportional tax and a regressive tax. Do you agree? Explain. [4] 6. Briefly explain the displacement effect in Peacock and Wiseman's model of government expenditure growth and provide a relevant example of it in the South African context. [5] 7. Explain how unbalanced productivity growth may affect government expenditure and briefly comment on its relevance to South Africa. [5] 8. South Africa has recently proposed an increase in its value-added tax rate to 15%, sparking much controversy. Why is it argued that value-added tax is inequitable and what can be done to correct the inequity? [5] 9. Briefly explain the difference between access to education and the quality of education, and why we should care about the…

Answer 2

Question

Chapter 18, Problem 1DQ

To determine

The difference between the two ways of beating competition.

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Explanation:

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Expert Solution & Answer

Explanation of Solution

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Economics Concept Introduction

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 1DQ

To determine

The difference between the two ways of beating competition.

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Explanation:

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Expert Solution & Answer

Explanation of Solution

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Economics Concept Introduction

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 1DQ

To determine

The difference between the two ways of beating competition.

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Explanation:

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Expert Solution & Answer

Explanation of Solution

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Economics Concept Introduction

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1DQ

To determine

The difference between the two ways of beating competition.

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Explanation:

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Expert Solution & Answer

Explanation of Solution

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Economics Concept Introduction

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Answer 6

Chapter 18, Problem 1DQ

To determine

The difference between the two ways of beating competition.

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Explanation:

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Expert Solution & Answer

Explanation of Solution

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Economics Concept Introduction

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Answer 7

Chapter 18, Problem 1DQ

To determine

The difference between the two ways of beating competition.

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Explanation:

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Answer 8

Expert Solution & Answer

Explanation of Solution

Yes, there is a lot of difference between the two ways of beating competition. Where the first way is to provide good quality services at low price and the other way is to restrict the rival’s entry with laws.

When a firm decides to decrease the price of its good and improve the quality of services rendered to the customers then it benefits fully to the consumers. When a firm decreases the price of the product then the purchasing power of the customer increases. Their ability to get large quantity of goods at the same income level increases. This increases consumer welfare.

On the other hand, when a firm gets a law passed against the rival competitors then it harms the entrant as well as the consumers. The number of firms in the market decreases due to the restrictive laws. Hence, the consumer faces higher price and get very few choices. This leads to decrease in the welfare of the consumer as well as the entrant firm.

Whereas, the existing firm in the market gets benefited from the restrictive laws. This is because of higher price and less competition in the market.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Competition in a market:

It is a way by which the existing firm in the market tries to have dominance in the market with a larger market share. The way of dominance depends on the quality, restrictive laws, and the price of goods provided to the consumers.

Answer 12

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 18 Solutions