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What are some of the aggressive tactics that should be used in monopoly for developing an economy?
What are some of the aggressive tactics that should be used in monopoly for developing an economy?
Expert Solution
A trust exists where there is only one supplier or seller of a product or service. For an economy to develop, monopolies should give way for other investors to invest.
One way to make monopolies contribute to economic development is through government intervention. Government has been the source of many trust companies hence making it easier to intervene. Therefore, states should come up with special regulations like in price and quality control, subsidies, or franchises. Competitors can venture in provision of substitutes as a form of competition or a differentiating quality of a product that serves the same purpose as of a trusted company.
The other way is by amending the antitrust rules for them not to focus more on monopolies, but encouraging rivals to concentrate on producing substitutes. Ultimately, many firms offering alternative or improved quality of a product can connote conspiracy among enterprises and conquer the entire market.
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