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 19, 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

Can you show me how to solve this.

ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = $20,000, P = $10, and P’ = $5, determine ƐQP, ƐQI, and ƐQP’.

What bill are they currently sponsoring? Please provide the answer to the question using www.akleg.gov for Senate Bill 30?

Answer 2

Question

Chapter 19, 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 19, 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 19, 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 19, 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 19, 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 19, 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. 19 - Prob. 1DQ Ch. 19 - Prob. 2DQ Ch. 19 - Prob. 3DQ Ch. 19 - Prob. 4DQ Ch. 19 - Prob. 5DQ Ch. 19 - Prob. 6DQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions