Why are Monopolies Considered to be Detrimental to Consumers? Monopolies are considered detrimental to consumers because they can lead to higher prices, reduced product quality, and fewer choices. With no competition to incentivize innovation or cost control, monopolistic companies may underinvest in product improvement while charging higher prices. This lack of competitive pressure can also … Read more
How important is market demand in evaluating scalability? Market demand is extremely important in evaluating scalability for any business. It helps determine the potential for growth and expansion of products or services in both current and new markets. Understanding Market Demand Market demand refers to the desire of potential consumers to purchase a product or … Read more
How does the current energy crisis impact fibre internet in South Africa? The current energy crisis in South Africa is impacting fiber internet primarily through power outages that affect the equipment needed to operate the network. These outages can lead to internet downtime, especially when they exceed the duration that backup batteries can cover. Additionally, … Read more
In a perfect market, also known as a perfectly competitive market, a single seller can’t influence the price of a product for several reasons. Here’s a breakdown: This combination of factors ensures that in a perfect market, the market price is determined by the overall demand and supply, and individual sellers must adapt to these … Read more
Examples of perfect markets in South Africa: In economic theory, a perfect market or perfectly competitive market is one where there are many buyers and sellers, all products are identical, and no single buyer or seller can influence the price. It’s pretty tough to find markets that completely fit this description in the real world, … Read more