Question

The policy makers of Country LT have noticed a steady increase in grain prices over the last several years. The increase in price has caused food prices to rise, resulting in a chain reaction in the economy as consumers purchase less of other goods. After investigating, policy makers found that grain prices are associated with a monopolistic company that is selling grain to food producers. This company has raised their prices to make a larger profit because there is minimal competition within the market. If you were a policy maker in Country LT, how would you ensure that the ideals of free enterprise are preserved while protecting the citizens of your nation? Explain your answer in three to four sentences.

Answer 1

If I were a policy maker in Country LT, I would create a regulatory policy that allowed the grain producer to make as much in profit as possible, but still protect consumer needs. The company would be required to create various smaller companies, each selling different types and quality of grain for varying prices. This would preserve the ideals of free enterprise, encourage competition within the market, and help to keep food costs down for consumers.

Answer 2

Answer:

If I were a policy maker I would create a policy that allows th producer to make as much in profit as possible but still protect consumer needs. The company would be required to create various smaller companies

Explanation:

edg 2020