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Regulated Industries

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

US Macroeconomics

Give a specific example of how you used the marginal decision-making principle to choose between two alternatives. Give an example of a public good What is the current minimum wage in the U.S.? Give an example of cap and trade legislation. The automobile industry operates in a(n)___________________

Product Evolution from One Market Structure to Another

Please answer the questions below: 1. Describe how a product might evolve from one market structure to another and what that means as to the price, competition and number for firms producing that product. 2. Are there any lessons from microeconomics that could be applied to revisiting our current economic regulations and

Money supply

What happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a net seller of government bonds? Then describe what happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a net buyer of government bonds. How do these policies impact the firm or i

Four Market Types

Part 1 Summarize the differences between the following four market types. 1. Monopoly 2. Oligopoly 3. Perfect Competition 4. Monopolistic Competition Part 2 Provide a general explanation of how businesses may maximize profits within each of the aforementioned market types.

Conduct an Information Interview

Read the following: “How to Build Your Network” by Brian Uzzi and Shannon Dunlap Harvard Business Review article, no. R0512B Conduct an information interview using the instructions of the above article document readings. Informational Interviewing Tutorial. Accessed August 12, 2009, at: http://www.quintcareers.com/

True and False Problems

True/False 1. The basic economic decision rule is to undertake an action only when the marginal benefit of an action exceeds its marginal cost. 2. If caviar prices doubled, while sales of caviar rose 20 percent, this example would definitely refute the law of demand. 3. In 1998, Hurricane Mitch not only destroye

Compensation of Monopoly Workers

Answer 3 out of 6 questions. 1. Do employees of monopolies get paid more compared to workers (who do the same work) in other industries that are not monopolies? 2. What are some major ways that the "product is differentiative" among internet service providers? 3. What barriers to entry are there for the gasoline retail

Need help interpreting and answering two questions

Looking for help interpreting and answering two questions that relate to the article attached. Questions: 1.Minimum pricing allows a firm to stop retailers from lowering prices on competition with each other. Do you agree that there are "benefits to consumers" that would outweigh the benefit of lower prices; i.e., should fir

Ten basic microeconomics discussion questions

1. List four shift factors of demand and explain how each affects demand. 2. In 1999, Domino's Pizza, a corporate sponsor of the Washington Redskins (a football team) offered to reduce the price of its medium-size pizza by $1 for every touchdown scored by the Redskins during the previous week. Until that year, the Re

Explain antitrust policy and regulation.

How does antitrust policy and regulation affect economic welfare? Please explain in details. Please include any citations (APA) resources, if necessary. Thank you!

Define and give an example of perfect price discrimination.

1- Define and give an example of perfect price discrimination. Explain how price (rate) regulation may improve the performance of monopolies. In your answer distinguish between (a) socially optimal (marginal cost) pricing and (b) fair return (average and total cost) pricing. 2- How does monopolistic competition differ

Monopolistic Competition and Oligopoly Case Study: Milk, Including Honey Fronterra, created in 2001 by New Zealand lawmakers, benefits some 13,000 dairymen instead of all the citizens of the country. The fortunes of the dairy industry lead the New Zealand economy. Fronterra, the dominant player, is: · Export focused · A commodity player · Deals with exchange rates, particularly the U.S. dollar · Is plugged into the Knowledge Economy (a government sponsored program) · Has the backing of powerful lawmakers who overrode previous legislation on competition policy issues Dissidents state that "if the government really wanted to make transformational change in New Zealand, it would insist that Fronterra was not captive to its current owners, particularly because Cabinet Ministers frequently claim that one of the reasons why New Zealand companies do not maximize their growth is the lack of ambition of their owner-shareholders, who do not want to dilute their holdings and who are content to take regular cheques and an easy lifestyle." They would prefer that ordinary New Zealanders be allowed to buy stock in the venture. Source: Fran O'Sullivan, "Pressure on NZ's Big Cheese," New Zealand Herald, December 20, 2004. Questions: 1. What would the textbook call this market structure? 2. Is this a case of collusion? 3. Why is any collusion fragile? 4. Are the central elements of an oligopoly present in the story? 5. Would citizens be better served if ownership in Fonterra was open to all?

Monopolistic Competition and Oligopoly Case Study: Milk, Including Honey Fronterra, created in 2001 by New Zealand lawmakers, benefits some 13,000 dairymen instead of all the citizens of the country. The fortunes of the dairy industry lead the New Zealand economy. Fronterra, the dominant player, is: · Export focused

Competition and Market Power

Review and answer the following questions: 1. The official "Incredible Edible Egg" Web Site: Go to: http://www.aeb.org/. This website is sponsored by the American Egg Board. Among other things, the site is clearly an advertisement for the egg industry. Have you ever seen or do you expect to see advertising for individu

The behavior of Profit-Maximizing Firm

Please refer attached file for diagrams. 1)The demand curve facing each wool producer is ________ starting at $3.00 per pound. a.Downward sloping b.Upward sloping c.Vertical d.Horizontal 2)If a firm in a perfectly competitive industry raises price above market price, a.Its total revenue will increase b.Its profit wil

Regulation, Antitrust, Public Goods, and Public Choice

Question 1 Discuss the rationale for government regulation of firms with market power. Is regulation in the consumer's interest or in the producer's interest and how might this control special interest groups? Question 2 There is a tendency to turn problems of market failure over to the government. However, a representa

Traditional examples of natural monopolies

How does globalization lead to greater competition in the market place? What are the implications for market structure in industries opened to global competition? What is an example of a natural monopoly? Will a monopoly always produce at a profit-maximizing level of output? Explain.

Regulating Perfect Competition with Externalities

1.A firm is producing output in a competitive market, where demand is P = 24 - 2Q The marginal private cost of production is equal to $4 and the marginal social cost is $2. Explain the nature of the market failure and derive the Pareto optimal level of output. How could the Government ensure that the market produced the opti

Regulations to manage pollution externalities

Sometimes market activities (production, buying and selling) have unintended positive or negative effects outside the markets scope. This is called an Externality. Suppose that you are a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant. What tools would you use? What w

profit and optimal price

The Appalachian Coal Company sells coal to electric utilities in the southeast. Unfortunately, Appalachian's coal has high particulate content and therefore the company is adversely affected by state and local regulations governing smoke and dust emissions at its customers' electricity-generating plants. Appalachian's total cost

Killer Cars and the Rise of the SUV discussion questions

Discussion Questions: 1. Why did Congress pass the CAFE standard? 2. Does your answer to question 1 imply either that consumers do not know what is in their own best interest or that firms will not voluntarily provide the goods (including fuel economy) consumers want to purchase? 3. Suppose that Congress really knows what the

Future Market Conditions

Help explain this Future Market Conditions toe the Music Industry and Compact Disc Sales, address the following topics: 1-Cost structure (wages and benefits; fixed and variable costs) 2-Impact of government regulations

Discussion Question

Answer the following question in your own words without quoting anyone: Why do industrial economies find it necessary to have antitrust regulations? Include in your answer a discussion of the different types of mergers, and alternatives if any, to antitrust policy.