Question

Write a short piece in your homework journal, 200-300 words
describing the incident or condition
explaining how it shows that free market, self-interested pursuit of profit brings about a worse-off condition for society.

Answer 1

A very good example is the telecom market . In India , at one point of time , there were (till about 2012-13 ) , 8-9 telecom service providers with an entire ecosytem built of suppliers , customers , employees , companies etc.

In 2015 , suddenly Reliance enters the telecom market and they started offering free telecom service ( data and voice ) to all subscribers for a period of more than an year (almost 2 years ) .

The customers intitially loved it , as they were getting it free -but the results were dissastrous for the market and later to the cusomers too .

No company can compete with a free product or service - almost 6 companies collapsed , with thousands of people losing jobs , dealers going broke and it sent the economy into tail spin .

Ultimately there are only 2 comanies left in the field , and customers are paying much higher prices today as compared to 4-5 years ago and no hope in sight as these 2 companies are adopting monopolistic practices .

had Government intervened and regulated the environment , things would have been much better for everyone .

This shows how a free market, self-interested pursuit of profit brings about a worse-off condition for society.

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