voters and policymakers in many countries have made the (normative/positive) judgment that monopolies are usually a bad thing.

1 answer:

3 0

Voters and policymakers in many countries have made the <u>normative </u>judgment that monopolies are usually a bad thing.

Normative Judgement refers to a judgement that is given by the jurisdiction which is agreed by all the people. It is a kind of solution statement to any problem. In the case of monopolies countries gave normative judgement because monopolies at a larger extent are not good for the local market of the country. If any particular company monopolizes the market regarding a particular product, then the consumers will buy that product from only that company and not anywhere else. This reduces competition in the market as the local sellers loose their consumers and livelihood. However, monopolies are a part of the market because monopoly at a normal level is necessary as their will be so many sellers of the same product in the market and consumers will get confused.

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