No single firm can influence the market price, or market conditions. Firms are a price taker, There is no need for government regulation, except to make markets more competitive. There is also maximum choice for consumers. Monopolistic Competition is a market structure in which many firms sell products that are similar but not identical. There.
Markets - essay Question 1 (a) Explain the role of prices in allocating scarce resources in a market economy. (b) Discuss the view that that the use of maximum and minimum price controls only serve to distort markets and bring about a misallocation of resources.