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UNO [17]
3 years ago
7

Why might the lack of competition resulting from business mergers tend to lead to market failures?

History
1 answer:
NNADVOKAT [17]3 years ago
7 0
If businesses merged too much, they would get into a position where they could control the entire market. They could then dictate the prices completely for the purpose of profit and this might be bad for the people. People wouldn't have the money to procure goods and the market and the economy would completely become ruined.
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The "Tea Party" happened in 1770. The Americans threw about $1 million dollars worth of tea into the harbor over the tax placed on the tea. They (Samuel Adams in particular) wanted to send the message "taxation without representation is intolerable."

King George was not particularly happy with his Massachusetts colony prior to the dumping of the tea, but afterward his anger was almost unbridled.

In retribution King George ordered all governors be replaced by English Governor Generals. He also ordered the court system, particularly the maritime courts, be presided over by English judges. And although these acts were meant to apply to all 13 colonies, nowhere were they more obvious than Massachusetts which the King considered the root of all disharmony. He was probably right on that point.

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