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. apt(p) that the new company is now run as a monopoly, how provide this benefit the stakeholders involved, such as the government, businesses, and consumers? A monopoly historically increases hurts for consumers and slows growth and development in the effort. In a monopolistic environment businesses no semipermanent have a ingest to compete, either in terms of pricing, servicing, or hawkish advantages. That volition credibly detrimentally affect consumers. Monopolies, however, tend to stabilise the marketplace. That leave behind be good news for stakeholders who while whitethorn no longer recognise increased revenue, will heretofore see tranquillise profits. The government is potentially a wildcard and whitethorn pursue an anti-trust lawsuit against the industry so as to formally break up the businesses (akin to AT & T in the 1980s). 2. Given the transition from a monopolistically competitive firm to a monopoly, what will be the changes with fancy to prices and output in both of these market twists? Price will increase due to lack of aspiration from other companies deep down the industry, and output may either moderately decrease or remain steady.

It makes no sense for a monopolistic industry to flood the market, since the gain of profits would cut back the price and increase costs. 3. What market structure is more in effect(p) for Wonks to master in, and will this be the same market structure that will benefit consumers? The most beneficial is likely a monopoly (if the businesses merge) or an oligopoly. This market structure would not benefit consumers who would sooner see monopolistic competition since it would allow for no vendee or seller barriers to entry, and significan! t companies for competition.If you want to get a complete essay, order it on our website: OrderEssay.net

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