CABOLIS, JOHN ALEXIS A.

MICROECONOMICS
BS STATISTICS 3-1 JUNE 30, 2023

Comment on “Does competition make us less moral?”

The study, although it proved a negative change in the moral behavior of the
market actors, seems not to be enough to draw the relevant conclusion that competition
really does make our morality less. I believe that it is too shallow for humans of sound
mind and body to get so affected by market competition that it lessens their morality.

I think that the effects of competition on morality have been low because there is
so much competition in the market that we are already used to it. Besides, on the side
of the consumers, they are the ones benefiting from the competition, so it is less likely
that they get negatively affected by it morally. On the side of the businessmen, unless
one has the chance to monopolize the market, there is not enough reason for them to
set aside their morality for economic advantages. As we’ve studied, competitors are
price takers. They only have very little control over the market that they are playing in. It
will be pointless for them to deteriorate their morality when it won’t do them any good.

In a monopolistic market, I would say that there are some possibilities that the
monopolies will take advantage of their position and take control of the consumers.
Distinct from a competitive market, the control in a monopolistic market is with the
monopolies. They have all the chances to exploit their market, especially if they are
producing basic goods and services. They have a higher chance of being less moral.

In conclusion, the study needs more factors to consider before concluding that
competitions affect the morality of individuals. There are lots of other reasons that might
affect the result that they have obtained. The result is very minute to conclude such a
phenomenon.
 Comment on “Big Companies are Starting to Swallow the World”

The bigger the company, the larger its profits. But they also have larger costs to
pay. Whether in production, taxes, etc. They are also taking way higher risks than small
business owners. These may seem to justify the monopolistic urges of big companies.
However, it does not

With monopolies, the possibility of a high price well above the seller’s marginal
costs that leads to a high monopoly profit is enormous. They are the price makers, and
they will do everything to make the price work to their advantage to maximize their
profits. They can also impact economic phenomena like inflation, which may affect
consumers and also their small competitors. The higher the monopoly, the higher the
possibility that consumers will suffer from its exploitation.

It is difficult to control a monopolistic market. Sometimes, even the government

has very little control over it. Consumers should learn to create more competition for
their benefit by supporting small businesses. Consumers have to make sure that there
is always competition in the market to prevent mergers from taking advantage of it. The
consumers should also urge the government to strain the big companies by setting
controls over prices and increasing their taxes, while also making sure that these tax
increases will not be taken back from the consumers.

As time passes and as technology progresses, huge multinational and

transnational companies are imperializing the world to exploit scarce resources and
create destructive monopolies. Governments and citizens of the world should notice all
of these and do anything that they can to prevent them from worsening.