Perfect competition V. Monopolies Essay

In the American Economy, handicraft is controlled by the governance and the consumer. When a person is the owner of a trade that is alone in its product that it provides for the consumer, it is said to be a monopoly. As a monopoly you stir sole control over price. Monopolies are regulated by the disposal in order to prevent the misuse of power that a monopoly has. If a person can only get misfire, for example from one store. therefore the store can charge a lot more for that turkey than it could if the store next door was selling it too because then there would be argument.Also, the store would not have to produce a make better quality of turkey because there would be no reason for it to do so. In this web site the consumer is taken unfair advantage of by the business owner, in this case the store. Government regulates monopolies to promote a stainless tense competition economy and to get rid of the turkey situation discussed above. The benefits of a perfect competition economy benefit consumers. For example, if we go back to the store, in a perfect competition economy all of the stores have turkey.Now the stores requisite to make sure that the turkey that they sell is the better turkey and monetary value the least. In this situation they are competing for the consumers business. However, business owners of a monopoly situation disagree with the organisation. When there is a business that has the potential to become a monopoly the government watches it very closely and the business has to go through the government for mergers and such. The more the business becomes a monopoly, the more the government says no to the businesss requests.For example, there is Microsoft. The government has been working to keep Microsoft from being the enceinte business that it is today. So, in conclusion, a perfect competition economy makes benefits for the consumer. Likewise, a monopolistic economy makes benefits for the business owner. On the flip side, a perfect competition shows drawbacks for the business owner and a monopolistic economy shows drawbacks for the consumer. The best way to run an economy is to have a balance in the midst of the two options. Americas economy does this.