Discuss a real-world example o
- Discuss a real-world example of a firm that you think operatesclose to perfect competition. What is the firm and what productdoes it produce? Who are the main competitors? Can you think of away this firm or industry benefits you as a consumer?
- Now discuss a real-world natural monopoly that you deal with.Is this natural monopoly efficient, or does it cause losses tosociety? In your opinion, should this natural monopoly be allowedto exist?
- the firmproducing and dealing with the sugar is a market that is close toperfect competition.this kind of firm converts the sugarcane intouseable sugars which can be used in the domestic as well as otherproduction units concerned with the sweets etc. groceriesshops,departmental stores and whole-sellers are the main competitorunder this market.
- this kind ofmarket provides us the best quality product at reasonable price andtherefore these are beneficial for the consumer and no firm cancharge higher price and price is in general same and consumers areaware of this fact.
2.we face themonopoly in the supply of electricity and demand for this isinelastic and there is inefficiency found concerned with the pricecharged for the units of electricity supplied.moreover the supplierpractice price discrimination which means it charges differentprice from domestic and commercial user.higher taxes are imposedand due to lack of substitution the consumer surplus is very low inthis type of market.
- this kind ofmonopoly should be abolished and private sectors should be allowedso that the maximum benefit can be achieved and experienced by theconsumers.