Question

"The fact that some airplanes collide is evidence that there is too little air traffic control."...

"The fact that some airplanes collide is evidence that there is too little air traffic control." Evaluate using economics

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Answer #1

The lack of control and effective communication in air traffic control may cause a risk of collision. Similarly without the government intervention and control the firms can exploit monopoly with charging high prices to consumers and paying the low wages to workers. Similarly collusion in oligopoly arises if two or more firms enter into a secret agreement on imposing a limit to open competition by misleading, deceiving, or gaining an unfair advantage or defrauding others in market of their legal rights, or on putting efforts on a goal forbidden by law.

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