Question

1. In managing or creating a firm, would you rather operate in a competitive market or a monopoly? Why?

2, Is a monopoly a good or a bad thing for society? Why

Answer 1

1. I would prefer creating a monopoly rather than operating in a perfectly competitive market.

This is because monopoly firms have full control over the market, make positive profits and face no competition.

Although, it is difficult to operate in such markets and keep competition at bay, but in the long run, monopoly markets are preferred.

2. A monopoly is not bad for the soceity, because a monopoly firm always engages in continuous R&D to increase efficiency and offer new and innovative products in the market, unlike perfectly competitive markets where no R&D takes place and firms have zero incentive to grow and develop.