Question

The goal of all capitalists is to dismiss the competition and gain market power.

a) Explain why that might be hurtful for the economy, though not for everybody, clearly stating who wins and who loses in the presence of monopolies.

b) What can be done about monopolies? Explain some of the possible policy responses by the government and why some might be more appropriate than others in a certain context.

c) But do we have to do anything? Explain Schumpeter's ideas.

d) Does oligopoly leads to a better outcome?