Question
How do the large companies manipulate the market? Explain with examples.
Solution
Companies with huge wealth, power and reach manipulate the market in various ways. Markets do not work in a fair manner when the producers are few and powerful whereas the consumers purchase in small amounts 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 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.
