Government Role in Firm Size

Abstract This paper discusses the role brass should take aim in the sizing of firms and why they should have a role. An example is given of the financial and banking industry and the regulations that members from the House of Representatives are attempting to impose on these companies. In addition, this paper discusses why regulations and business laws are in aspire. place words: government, regulations, monopolies, anti-trust In whatsoever given market, competition is essential to keep the economy and business efficient. Without competition, too many monopolies would exist, which have been made illegal via anti-trust laws. While natural monopolies still exist, much(prenominal) as local utility companies, they are controlled by government regulations. Most nations allow their governments to run their natural monopolies directly, but the U.S. has a hybrid system, in which private utilities are publicly correct to annul monopolistic abuse (www.huppi.com, 2011). In an effort to avoid major threats to the economy and reduce the potential pitfalls of firms, government should act upon an active role in particular firms. Imagine if any business or firm could do whatever they expected without government regulations or laws.

Our nation would look completely different, and businesses could leaven products releasing hazardous pollutants into the air, charge any price they want and piracy laws would exist, etc. In an effort to minimize or eliminate unfair trade practices, the anti-trust laws were put into place. Anti-trust laws reduce barriers to entry, breaks up monopolies, and eliminates conspiracies to increase prices. Additional business laws are in place to protect us against fraud, false advertising, breach of contract, embezzlement, insider trading, etc, and without them, the market could not operate (www.huppi.com, 2011). The government is useful for correcting market failures, which an imperfection in the price system that prevents the efficient allocation of resources... If you want to draw in a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!