Laban Company is an established underwriter who imposes a 0.80% underwriting fee in every

transaction it closes. On the other hand, Bawi Company, a new player in the market, imposes an

underwriting fee of 0.75% to its clients. Jackpot Company, another player, enters the market, offering

an underwriting fee of 0.60% for every transaction.

Questions:

1. Who among the players will face a high risk of sustainability if it will not adjust to the competition?

Why?

2. How can the government support the sustainability of Laban Company?