Overpricing in a Free Market Competition: The elasticity of demand
The government intervention is important for the welfare of the consumer in diferrent market structures. Without intervention, organizations like the monopolistic cannibalism, havimg the power to dictate price without considering the welfare of the consumer is very dangerous. It may contribute increase of poverty in a certain country. The distribution of wealth is not equal among its citizens. Cannibalism is over-profiting over the distribution of goods and services. Over pricing is not a problem in a perfect market because most of the time in this type of structure, sellers compete in low cost that result lower price offering to customers. In a perfect market products are the same over varios retaillers and wholesellers. In this structure, the buyers have the power to prices. The problem of prices lies in the three market structures, although these type of market structures almost the same their differences are only slightier. There objective is profit. In a monopolistic competition there are few companies that compete differentiated products although the purpose of the product almost the same. In an oligopoly, there are also few organizarion that compete differentiated product like monopolistic competion and they are both the same in their objective to gain more profit. The monopoly in the otherhand is a market structure where a single organization produce no other product or services. In this market structure, it could dictate price in the market, it has the power over the buyer. This study focuses only to perfect competion market structure that can be found in our common public market. The study aims to find effect of overpricing of a certain seller on its product to the customers. What are the benefits and disadvantages of the customers over the overprice product in the perfect competition in the public market. Please visit: https://about.me/dennis.padura https://m.facebook.com/5gtek/?tsid=0.8305182553027692&source=result











