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Regulated Industries

Regulated industries are industries that are, in simple terms, regulated by the government. The government can set parameters for pricing, profits, quantities produced, methods of production, etc. The most common examples of regulated industries are the airline industry, railroad industry, and television broadcasting industry. Both the federal and state government can regulate industries. The government may choose to regulate an industry for a variety of reasons including prventing monopolies, keeping a low price, providing sufficient quantity, the industry is a national necessity, etc. The government can also regulate production methods and how a company uses social media. Industries that are highly monitored by the government have to be extremely critical of the content they display through social media because they must follow a strict set of guidelines when using social media.

An example of government regulation can be seen in a publically traded company. In order to avoid insider trading and selective discloser, the government can ensure that material information is released to investors and the public at the same time. Regulations can be placed on the pharmaceutical industry to insure that pharmaceutical companies follow the appropriate rules and regulations.

Authorities that specialize in the particular industry, such as the Food and Drug Administration (FDA), who monitor the health care industry, will enforce specific guidelines. The FDA ensures that drug-makers follow a particular procedure of distribution and monitor customer privacy.

Categories within Regulated Industries

Electrical Utilities

Postings: 21

Electric utilities are electric power companies that produce and distribute electricity in regulated markets.

Dynamic Pricing vs. Fixed Pricing

Discuss the advantage of dynamic pricing over fixed pricing. What are the potential disadvantages of dynamic pricing? If you were in charge of pricing strategy, what pricing strategy would you use and why?

Pricing Strategies and Profit Maximizing Behavior

1. Ageless Corp. has a patent for a new promising age-defying moisturizer cream. The annual demand, marginal revenue, and marginal cost functions for this cream is estimated as: P = 150,000 - 250 (Q) MR = 150,000 - 500Q) MC = 100 A) If Ageless Corp. behaves as a profit maximizing monopoly, determine the price

BP oil spill and global supply chain

Reflect on the BP oil spill as it relates to the global supply chain - Examine the use of current transportation economic situations such as the 2010 BP oil spill in the Gulf of Mexico.

Unlimited Liability, Contingent Capital and Living Wills

Mankiw argues that if federal authorities assume responsibility, the entire financial system might well become a group of government-sponsored enterprises. Question: A) Explain how preventing the impact of systemic risk creates a financial sector dominated by government-sponsored enterprises. B) Evaluate the practicality an

Cost Structure, Transaction, and Networks

Can you respond to these four questions with 2-3 paragraphs each citing some decent references? 1. Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. 2. At the same time some internet businesses such as grocery home de

Widget Corp: Regulation of a monopoly. Detailed calculations and explanations.

The widget industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by P = 800 - 20 W Where W represents the number of widgets sold per period. The total cost function (including opportunity or implicit costs) for Widget Corp. is TC = 300 + 500 W + 10W^2 a. Assuming the

Mergers and Government Intervention

I need some help with answering the following questions: What are the differences among horizontal, vertical, and conglomerate mergers? What are real-world examples of each type of merger. What policy do you think the US should follow toward mergers? Why? What effect does government intervention, taxation, and regulations

CEO pay

1.) Most stocks and options awarded or charged to CEOs are not indexed to either industry average or to marketwide averages (e.g., the S&P 500). If the goal is to create incentives for CEOs to increase their companies' value, but also protect them from added risk from stock market fluctuations, does it make sense to index option

Government Regulations in Economies

1. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy. 2. Justify the rationale for the intervention of government in the market process in the U.S. 3. Assuming that the merger faces some threats and that the industry decides on self-expansion as an alternative

Disequilibrium in Markets

Describe two different markets where there has been a market disequilibrium. That is, there is a shortage or a surplus. This is often temporary for weeks or months, maybe because of a natural disaster. Briefly discuss the supply and demand curve in each case. What can a manager of a firm within this industry do to minimize the i

NYSE Homepage & NASDAQ Homepage

You have been asked to write a report for a group of new stock brokers about the NYSE-Euronext and the NASDAQ. Visit both the NYSE Homepage, and the NASDAQ Homepage, and write a paper on how the two exchanges operate. Make sure to address the following three questions: How are NYSE and NASDAQ similar, if at all?

Regulation & Antitrust and Free Markets

Activity 1 Regulation and Antitrust The top 6 firms in an industry have the following market shares: A 25 B 25 C 20 D 10 E 10 F 5 Firm C wants to buy out Firm F. Will the Department of Justice likely approve this acquisition? Calculate the Herfindahl-Hirschman Index (HHI), showing all work. Activity 2 1. A

Deregulation and Financial crisis

The Deregulation Movement and Financial Crisis Beginning in the late 1970s and continuing through the 2000s, the business environment moved toward relying less on government regulation and more on the marketplace to achieve desired economic objectives. Consensus successes in deregulation have come in airlines, railroads, tel

Environmental Protection

1. Environmental Protection Agency (EPA) regulations tend to go through many stages of review and approval before they are implemented. Not only do many regulators have to approve a new regulation, but comments and reviews from industry and conservation organizations are typical. Explain these complicated procedures in light of

Applied Economics in Business

Although most people agree that the governmentâ??s role in the free market economy should be limited, the degree of appropriate government involvement is contested. Under what circumstances should the government bailout a failing business? Explain and cite a specific example to illustrate your reasoning. Some people might ar

Microeconomics Review

Â?¢ Definition, Shape of the AVC, ATC and MC Curves in the Short Run: Law of Diminishing Returns â?¢ Long run Cost Curves â?¢ Shape of the curves: Economies & Diseconomies of Scale â?¢ Different Plant Sizes & Structure of Industry â?¢ Different Market Structures: Perfect Competitive firm & Perfectly Competitive Ind

Monopoly power inquiry

Please help with the following problem. Include references in the solution. Describe a real life situation of a firm having type monopoly power that is not due to government regulation. What is the source of their monopoly power and how do they exploit it?

Necessity of social regulation

I need help with the following problem. Discuss the claim that social regulation is unnecessary. Does the claim depend on whether the industry is perfectly competitive or is an oligopoly?

Market Structure: Perfectly Competitive Industry

Cammco Industries operates in a highly competitive market. While there are few other firms in the industry due to the high fixed costs of building plants, rival firms are very aggresive in their pricing strategies. Of the products sold in the industry, over 80% have 10 years of patent protection remaining. Does this industry

Monopolies

Hello: This assignment will need to be 1,000 words. If sources are used, please be sure they are "quoted with quotations," and the reference is listed. The query is: No firm is completely sheltered from rivals; all firms compete for all customers and their money. If that is true, pure monopoly does not exist. Do you agree

Financial Management Assignment

1. During 1998, the Senbet Discount Tire Company had gross sales of $1 million. The firmâ??s cost of goods sold and selling expenses were $300,000 and $200,000, respectively. These figures do not include depreciation. Senbet also had notes payable of $1 million. These notes carried an interest rate of 10 percent. Depreciation w

Simple Economics questions

Provide help to define the following: what three kinds of government regulations: social-regulation, anti-trust, and economic rules, Demonstrate Social Regulation purpose dependent upon Competitive / Oligopoly & Lawsuits for Monopolist Forces / effect from Efficiencies, Demand & Cost-Curves for firm in oligopoly. See attached

Price Elasticity of Demand

1.If the demand for corn increases due to its use as an alternative energy source, what will happen to the supply of corn's substitute such as soybean? Assume that, besides being substitutes for one another, corn and soybeans require the same raw material, such as the same farm land. Think about whether farmers will use their so

Natural Monopoly Problem

What is a natural monopoly and what has happened to natural monopolies in recent years? Explain. Under which market structure does your type of business fall? Explain your answer giving the advantages and disadvantages of such a market structure.

Saudi Arabia in todays economy

I need someone to help me with a research on Saudi Arabia. I need some detailed information on what role Saudi Arabia plays in todays economy. It should be approximately two pages long (double spaced). I would appreciate it very much. Thank you