Restricting What Firms Can Do Homework Help

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There is a very important topic in the subject of economics, and it is named as restricting what firms can do. This is a detailed topic with a lot of intricate aspects, and that’s why there is a high chance that you may be having confusion in it. Thus without wasting any more time, you should opt for restricting what firms can do homework help.

Insight to the topic restricting what firms can do

At we will see to it that you get restricting what firms can do assignment help in an exceptional manner. If certain firms in an economy are having a lot of market power,then they can manipulate the prices as well as quantities of products and services. It is against the fair competition, and the consumers will have to suffer because of this situation because they will be charged higher prices and will enjoy restricted quantities.

So in order to avoid this situation, the government has to intervene and thereby put restrictions on the activities that firms can do. Once you will get restricting what firms can do homework help then all these things will become clear.

The various restrictions on the activities of firms

The government can put various restrictions on activities of firms so as to ensure that they are not taking undue advantage of the market power and these are discussed as follows-

  • The formation of cartels may be prohibited.
  • Amalgamations and mergers can be monitored if it aims at reducing competition.
  • There can be strict measures against dumping activities.
  • Price fixation by collusive partnership is prohibited most of the times.
  • There can be restrictions related to imports and exports.
  • Itis also ensured that the firms are not able to dominate by having a monopoly power.
  • Sometimes firms may divide territories and thereby eliminate all the competition. This practice is also checked by imposing strict rules.
  • If the firm is the sole supplier of certain goods or services and is intentionally producing limited quantity in order to drive the prices high then also the rules and regulations will keep such activities in control.
  • Sometimes large firms may employ labor force at less than the normal wage rate and in below the standard conditions of working. The regulatory authorities can put serious restrictions if labor laws are not followed.

There can be various other cases as well where firms can be restricted by undertaking various activities and to get in depth understanding on this topic you must get restricting what firms can do assignment help.

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