Friday, April 26, 2019
Economics Regulation and Market Structures Essay
Economics Regulation and Market Structures - Essay causeEconomic regulation affects new companies who want to enter into a market. This reason why new competitors be affected is that they may not be able to enter into a market due to this trunk of regulation. affectionate regulation deals with exact social problems such as toxic waste, produce safety, employee safety, and prejudice (Social Regulation). Social regulation exists because in the 60s and 70s the government established regulatory agencies to handle a considerable variety of social problems. The entities affected by social regulation include local businesses and citizens. Businesses may pack to have a plan to deal with social problems, while citizens may have their rights restricted in terms of what they can purchase. A natural monopoly occurs when a firm can fulfil the market indigence for a good or service at a cheaper price than all other competitors ( born(p) Monopoly). The reason why natural monopolies occur is because sometimes a market can only deem wizard producer. According to economic theory, firms can attain monopolies because of unique raw materials, technology, or other factors. An use of a natural monopoly is the gas industry. It is uneconomical to build new infrastructure so just one set of infrastructure is built. This results in company having total control of the market (Pieterz). The antitrust laws attempt to state business to compete fairly.