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Does a merger of two companies leave consumers better or worse off?
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In theory, perfect competition means that consumers can buy identical goods or services from different sources. Buyers have a natural tendency to buy things that are perceived as less expensive. As the price for one source drops, the entire customer base will quickly flee to the cheaper price until the supplier is no longer able to service the increased demand. In the mean time, the other suppliers will have dropped their prices to reacquire market share, or will leave the market if they can no longer compete at the established price. This creates a de facto monopoly in the last remaining supplier, who can then raise prices dramatically, even though the increased volume may have actually reduced the unit costs through various scales of economy. The total profit increase can be dramatic and may quickly stimulate regulatory concerns.
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Africa's leaders to turn the socialism for their economies?
Ordered foregien companies to leave
African leaders who turn their socialism for their economies?
ordered foreign companies to leave
