Tuesday, June 11, 2019

Monopolies - Gas and Electric Essay Example | Topics and Well Written Essays - 250 words

Monopolies - Gas and Electric - Essay ExampleGovernments intervention leading to monopolization of the gas and electric car sectors of the given country will have positive and negative implication to the general economy. Governments intervention in such businesses will come across that consumers receive better services from the traders of the particular product (Tucker, 2011). Government will also help consumers exercise maximum sovereignty without any form of utilization by the individual traders. In addition, governments intervention in monopoly of gas and electricity will help in ensuring that consumers get quality products and that traders accompany with the safety standards.According to Rittenberg, et al (2008), the negative experience that will occur when government intervenes, forming monopolies in gas and electricity sectors will include high embody of production as the producer will be unable to pass the costs to consumers. When costs of production rises, producers will strive to limit the use of cranky materials and this may compromise innovation. Furthermore, governments intervention in monopoly of gas and electricity may lead to skyrocketing of prices of the products due to the raised standards of services, which will have obstinate effects to the lower economic class (Rittenberg, 2008). Moreover, governments intervention in monopoly trade of gas and electricity will also derail look into process and spirit that a company may have to develop other ways of producing the particular

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