Suppose that a telecommunications company controls a large share of the national market. The government believes that the economies of scale in this industry are not significant, and, therefore, multiple smaller firms would be able to provide lower prices.

Question

Braggs

Computers & Technology

6 October, 22:41

Suppose that a telecommunications company controls a large share of the national market. The government believes that the economies of scale in this industry are not significant, and, therefore, multiple smaller firms would be able to provide lower prices.

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Answers (1)

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Johnny Collier · Answer 1

The use of the law to increase competition (option D)

Explanation:

If the government uses law to increase competition, the market share of the large company will be greatly distributed to the smaller companies. This will create healthy competition and automatically lower prices. The big company will then change its operations to compete in the market. In addition, consumers will receive lower price goods. Therefore, society (consumers), small sellers and even the large company benefit from this option