There are some economists that defend the notion that government works against c
ID: 1202235 • Letter: T
Question
There are some economists that defend the notion that government works against competition within certain industries and as a result, the industry becomes less competitive AND much more smaller. -- For example, the government may put up new regulations, restrict 'purchase' of market share or international policies which make it difficult for the companies within the industries to 'raise' prices substantially. ??Do you agree with this notion? And, if so, which industry falls into this category???
Explanation / Answer
Public transport,especially railways, is where there are stringent rules and regulations and government wants to retain its monopoly. So, in general, most of the government operated railways are less competitive and there are hardly any competitors in these sectors.