How do the large companies manipulate the market? Explain with examples.
Large companies can manipulate the market:
1. Large companies have so much wealth and power that they are able to manipulate the market to make profits.
2. Many times, they advertise false information through the media so that consumers are attracted to the product.
3. These companies acquire greater strength when producers are few and consumers are scattered.
4. For example, a company that sold milk powder claimed for years that scientifically, it is better than mother’s milk. Years of battle finally made the company take back claims.
5. Without proper rules and regulations, companies go to any extent to sell products. For example, only after many years’ struggle, the cigarette companies accepted that it causes cancer.
Explanation: Large companies have enormous wealth and thereby, power. Their sole aim is to make a profit so there needs to be rules and regulations in place for consumers’ awareness.
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