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Regulated Industries

Natural monopoly

A function of government is to regulate "natural monopolies." Explain what is a natural monopoly and why it requires government regulation.

Opposition of Free Market in Depository Financial Institution

The free market is the best regulator of business." Discuss why the U.S. public has not accepted this concept for regulating depository financial institutions. [In other words, why is there much less opposition to bank regulations as compared to possible regulation of, say, the automobile industry or the fashion industry?] At l

Supply and Demand / Market structures

1) What are the advantages and limitations of supply and demand? 2) Analyze how organizations in each market structure (perfect competition, monopoly, monopolistic competition, and oligopoly) maximize profits.

Externalities from an Economic Perspective

Externalities - is a cost or benefit experienced by a third party to a resource transfer. Discuss the following: a) An externality problem is a problem of incomplete information, since profits fail to accurately report gains and losses to society, True or false? elaborate b) How can the government intervene to make society b

Market Imperfections - Monopolies

Monopolies: Discuss the following statements in Detail a) are a good thing since they transfer resources from lower-valued to higher- valued activities thereby helping to maximize society's happiness? b) are bad because they produce too little output; thereby decreasing society's happiness c) a monopoly problem arises whene

Government Regulation

1. List and explain in detail three benefits of regulation. 2. List and explain in detail three benefits of deregulation 3. a. Is there too much government regulation today? Why or why not? b. Explain the impact of regulation on prices. c. Explain the impact of regulation on business investment.

Economics in a Global Environment

Details: Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this

perfectly competitive markets

What's wrong with the following statement? In the absence of direct government intervention, the market economy has virtually no power to regulate itself in the public interest or resolve conflicts of interests that arise among market participants.

Natural monopolies and multinationals

1. A function of government is to regulate "natural monopolies." Explain what is a natural monopoly and why it requires government regulation 2. What are the ways a multinational corporation can reposition its funds to increase its profits

Common, public, private goods and natural monopolies

Identify similarities and differences between common goods, public goods, private goods, and natural monopolies. Provide an example of each type of good and justify your answers. Discuss possible positive or negative externalities associated with each example. How do the externalities affect the economy?

Profit Maximizing Equilibrium Output

A firm produces output at a cost of: C = 50 + 20 X and sells it at a price of P = 220 - 4 X 1. Determine the profit maximizing equilibrium output, price and the total profit under two conditions: 1.1 A firm is a monopolist (15) 1.2 A firm under perfect competition (15) See attached file for full problem description.

Market Activity: Emission Reduction

Sometimes market activities (production, buying and selling) have unintended positive or negative effects outside the market's 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

Economics Questions

1. Consider the following information for a simultaneous move game. If you advertise and your rival advertises, you each earn $5 million in profits. If neither of you advertise, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million a

Microeconomic Questions

1. Consider the following information for a simultaneous move game. If you advertise and your rival advertises, you each earn $5 million in profits. If neither of you advertise, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million a

Natural Monopolies

Public utilities such as electricity are referred to as natural monopolies and are often subject to regulation by a state authority (the "public Regulatory Commission"). a) Explain why a public utility such as electricity is referred to as a "natural monopoly." b) Explain how and why an average cost pricing policy is applied

New Deal - Recovery

Franklin D. Roosevelt ' New Deal in the 1930's aid US to go through the depression. There were famous three Rs: relief, recovery and reform. Can I know what was the recovery? and what programs did he pass for recovery?

Microeconomic Multiple Choice

1.Consider the following entry game. Here, firm B is an existing firm in the market, and firm A is a potential entrant. Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter"). If firm A decides to enter the market, firm B must decide whether to engage in a price war (play "h

Economics of internet

EBay's Acquisition and Operation of Skype. See attached file for full problem description.

Antitrust Policy and Regulation

In 1993 Mattel proposed acquiring Fisher-Price for $1.2 billion. In the toy industry Mattel is a major player with 11 percent of the market. Fisher-Price has 4 percent. The other two large firms are Tyco, with a 5 percent share, and Hasbro, with a 15 percent share. The other two firms are Tyco, with a 5 percent share, and Ha

Tit fot Tat pricing

How can you determine if companies in an oligopoly are playing tit for tat pricing? Looking for illustration of Cournot Equilibrium and Reactive Curve.