Question

How do the large companies manipulate the market ? Explain with examples.

Answer 1

Large companies with wealth, power and reach can manipulate the market by making false claims. Markets do not work in a fair manner when the producers are few and powerful whereas the consumers purchase in small quantities and are scattered. False information is passed through the media and other sources to attract consumers.

For example, a company for years sold powder milk for babies, claiming it to be better than mother's milk. Finally, after a long struggle, the company was forced to accept that it had been making false claims.