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14 September, 09:59

Given the recent events in the US Airways and American Airlines merger, one has to wonder, is the airline industry monopolistic? Which is worse, monopolies or competition? Explain your answer.

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  1. 14 September, 10:07
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    in terms of which is worse, "monopoly" is bad for both the consumers and the industry, while a competitive market is good for consumers and the industry alike, however, it is not "perfect". there has to be regulations and a sort of a control.

    anyhow, a monopoly is bad then a single corporation has the total power from the supply side and this can lead to unnecessary price increases, lower quality products, industrial malpractices, national level frauds, etc, etc ...

    because of this, we always say a monopoly is bad, even if it is a government sector monopoly. many nations have laws and rules to ensure no monopolies will arise.

    in USA, we call such rules, Anti-trust laws.
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