“Limited competition and limited information result in the exploitation of consumers”. Support the statement.
CONSUMERS are exploited when producers are few and powerful whereas consumers are in large number. This happens especially when large companies are producing these goods.
These companies with huge wealth, power and reach can easily manipulate the market in various ways. At sometimes false information is passed on through the media and other sources to attract consumers.
For example a company for years sold .powder milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk. It took years of struggle before the company was forced to accept that it had been making false claims. Limited competition, leading to consumers being forced to buy a certain product. Limited supply of goods, products or services, leading shortages and black marketing.