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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. 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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Common topics in this essay:
- Blind Fait in the Free Market
- Free Market Economy
- India's growing prosperity opens up a new market for luxury-goods firms
- Market control
- Motivation and social responsibility of the free market:
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- Opportunity Cost And The Free Market
- Products, Services And Prices In The Free Market Economy
- Products, Services, and Prices in the Free Market Economy
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- Who Determines The Prices Of Goods In Market? Government Or Free Forces Of Market
- PRODUCTS, SERVICES, AND PRICES IN THE FREE MARKET ECONOMY
- Products, Services, And Prices In The Free Market Economy
- products,services, and prices in the free market economy
- History and trends of Free Market Capitalism
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