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

This week we will be discussing measures of economic well-being. Read the following short article from the Office of National Statistics from the U.K. which discusses different measures of economic well-being: https://blog.ons.gov.uk/2017/07/06/beyond-gdp-measuring-the-economic-well-being-of-individuals/ For this assignment, we will narrow down to the economic well-being of the St. Louis region (or another region you choose). As the article indicates there are different measures of well-being. You are interested in creating a Hypothesis Test about the economic well-being of the area. Discuss the following issues: First, think about your research hypothesis and justify it briefly. Remember, a hypothesis is a well-thought and untested proposition. What is the null hypothesis? What is the parameter you are interested in? (i.e., the measure of well-being). Is it going to be a Lower-Tail, Upper-Tail or Two-Tailed test? What is the data that you need and how will you collect the data? What…

Johnny brought $39.50 to the art supply store. He bought a brush, a sketchbook, and a paint set. The brush was 1 6 as much as the sketchbook, and the sketchbook cost 3 4 the cost of the paint set. Johnny had $2.00 left over after buying these items.

A young woman plans to retire early in 25 years. She believes she can save $10,000 each year starting now. If she plans to begin withdrawing money one year after she makes her last payment into the retirement account (i.e., in the 26th year), what uniform amount could she withdraw each year for 30 years, if the account earns an interest rate of 8% per year? a) Correctly plot the cash flow diagram with its respective vectors, arrowheads, units, and currency values. b) Correct mathematical approach and development, use of compound interest factors.c) Financial logic in the development of the exercise and application of the concept of time value of money. d) Final numerical answer and writing in prose with a minimum of 20 words and a maximum of 50 words of the obtained numerical interpretation.

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