Statement: Increased competition brings down consumer costs
The statement is not necessarily true. What is true is that competition between suppliers will always apply downward pressure on consumer cost. In complete isolation, the statement is completely correct. However, in real life things are never in isolation. There are also upward pressures on consumer cost that need to be taken into account.
More generally, you would use the elasticity of demand for the particular good you’re examining to find how much that increased competition between suppliers reduces the consumer cost. You compare that number with the increases in consumer cost caused as a side effect by whatever increased the competition. Find the difference between the values to get the net change. Whether or not increased competition brings down net costs is extremely dependent on the exact circumstances.
|Rate||Assets Under Management|
|1.00%||Between $125,000 and $750,000|
|.85%||Between $750,000 and $1,250,000|
|.80%||Between $1,250,000 and $1,750,000|
|.75%||Between $1,750,000 and $2,500,000|
|.70%||Between $2,500,000 and $3,250,000|
|.65%||Between $3,250,000 and $4,250,000|
A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate.
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Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?