Question

"markets do not work in a fair manner when producers are few and powerful, whereas consumers purchase in a small amounts, and are scattered."explain

Answer 1

• Large companies can manipulate the market like control of price and supply.
• They can pass false information to the consumer.
• They can sell substandard goods.

Answer 2

When producers are few and powerful, whereas consumers purchase in a small amounts, and are scattered then the consumers do not possess any bargaining power and have to pay whatever the producers ask for.

This leads to the exploitation of the consumers as they can be easily fooled by charging more by the producers.

So less producers and more consumers are always economical for the producers.