Title: Market control
|Date:||November 17, 2015|
|Length:||1 / 287|
|No of views:||0|
|Essay rating:||good 0, average 0, bad 0 (total score: 0)|
This is a result of "market over crowding."
In another example there are 20 firms with a concentration ratio of 80%. This means there is less of a market. The four major firms control 80% of the market. This is not good for the average person, since the price is basically controlled by four companies...
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Yes it would be a higher profit rate for the company. Yet it would put the "mom and pop" shops out of business. And be financially harder on the economy.
In the perfect world the concentration rate would be 60%. This gives the top four firms the leverage they need along with giving all the secondary firms a chance...
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