Business Ethics and Corporate Governance, Second Edition

SUMMARY

The absence of monopoly and existence of a situation wherein competition flourishes is a characteristic feature of a vibrant capitalist economy. Monopoly by its very nature kills competition and creates an environment wherein it destroys the benefits that ought to accrue to consumers in a competitive society, such as lowest prices, better quality goods, etc. Competition by promoting the survival of the fittest ensures optimum production and also consumer sovereignty. Therefore, eradication of monopoly and promotion of competition are the twin features of a competitive society, which underpins a real free enterprise economy.