Parliament: Govt will take steps to ensure affordable infant milk powder options
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This incident shows a few things about competition:
- can lead to unethical/questionable methods in order to out-rival competitors...through exaggerated claims in advertising, causing consumers to suffer
-as a reubttal to the above, u can also argue that competiton benefits the consumers by lowering prices. What the govt is trying to do now is to tweak import policies to encourage more (and other) brands of milkpowder to enter the market. With more options, it will depress the price and bring reprieve to consumers.
-competition can lead to aggressive marketing to make one's pdt stand out, but this causes consumers to suffer as the cost is passed on to the consumers....note eg of how milk powder price jumped by 120 percent in the last decade:
The Straits Times reported in March that the average price of a 900g tin of formula here has increased 120 per cent over the last decade to $56.06, outstripping the increases of other dairy products and household staples.
Qn: Is competition always desirable? (Cam. 2016)
This incident shows a few things about competition:
- can lead to unethical/questionable methods in order to out-rival competitors...through exaggerated claims in advertising, causing consumers to suffer
-as a reubttal to the above, u can also argue that competiton benefits the consumers by lowering prices. What the govt is trying to do now is to tweak import policies to encourage more (and other) brands of milkpowder to enter the market. With more options, it will depress the price and bring reprieve to consumers.
-competition can lead to aggressive marketing to make one's pdt stand out, but this causes consumers to suffer as the cost is passed on to the consumers....note eg of how milk powder price jumped by 120 percent in the last decade:
The Straits Times reported in March that the average price of a 900g tin of formula here has increased 120 per cent over the last decade to $56.06, outstripping the increases of other dairy products and household staples.
Qn: Is competition always desirable? (Cam. 2016)
posted by Dark Shadow | 12:58 AM
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