Market for a necessary good is competitive in which the existing firms are earning super-normal profits. How can the policy of liberalisation by the government help in making themarket more competitive in the interests of the consumers. Explain.

Market for a necessary good is competitive in which the existing firms

1.	Market for a necessary good is competitive in which the existing firms are earning super-normal profits. How can the policy of liberalisation by the government help in making themarket more competitive in the interests of the consumers. Explain.
Answer» <html><body><p></p>Solution :The policy of libralisation <a href="https://interviewquestions.tuteehub.com/tag/encourages-971001" style="font-weight:bold;" target="_blank" title="Click to know more about ENCOURAGES">ENCOURAGES</a> <a href="https://interviewquestions.tuteehub.com/tag/new-1114486" style="font-weight:bold;" target="_blank" title="Click to know more about NEW">NEW</a> firms to enter the industry. This <a href="https://interviewquestions.tuteehub.com/tag/raises-1176804" style="font-weight:bold;" target="_blank" title="Click to know more about RAISES">RAISES</a> output of the industry. Total market demand remaining unchanged, price starts falling. Consumers now <a href="https://interviewquestions.tuteehub.com/tag/get-11812" style="font-weight:bold;" target="_blank" title="Click to know more about GET">GET</a> the good at a cheaper price.</body></html>