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So i am doing the debate and the topic is uniforms. I got whole bunch of information but i still don't get what the anti monopoly law is. You need to help me. First answer that is good gets ten points. make it have alot of details

2007-03-26 05:59:43 · 1 answers · asked by eragon1029 2 in Politics & Government Law & Ethics

1 answers

I am not sure what the monopoly law has to do with uniforms except that the company selling the uniforms may monopolize the market and thus create high prices to maximize their profits. The point about monopolies and anti-monopoly laws is to foster competition in the market place and thus encourage reasonable prices. When a company has a monopoly on a particular market, they can charge whatever they want because their customers have no where else to go. A captive clientelle has to pay what you offer and you rack up the high profits. Competition brings prices down because if one guy tries to sell high, the other guy will sell for a bit less and take away the customers. Thus, each company tries to compete for lower prices in order to win the clientelle back to their company.
So anti-monopoly laws stop companies from ripping off the public by creating competition.
Now, in the context of the uniform debate, it seems that if a school district, for instance, wants uniforms for the students and there is only one company selling school uniforms in the district, then the government has to set up price controls to guarantee that the company doesn't rip off the public by charging whatever they want for the uniforms. The price control measure, would be the anti-monopoly law against the uniform company's unethical practices of price gouging.
Best wishes

2007-03-26 06:59:18 · answer #1 · answered by rac 7 · 0 0

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