Week 8 Assignment 2

809 Words Mar 9th, 2013 4 Pages
Week 8 Assignment 2
Dr.Chinwe E. Nweke
ECO100089VA016-1128-001 Principles of Economics
December 2, 2012

1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. The news informs everyone on a daily basis that the United States has the largest economy and that it is looking to be in great shape since four years ago. To some Americans it seems otherwise. The unemployment rate in 2007 was 4.6% compared to unemployment rate in 2012 at 7.5%. The U.S inflation rate ended in October 2012 after twelve months was 2.16% which is 0.11% higher than the one in September. The U.S inflation forecast consists of apparel, education and
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The purpose of the antitrust policy is to promote competition among firms. This leads to lower prices for consumers. A situation in the past in which the government used antitrust policies to stop monopoly from occurring was the American Telephone and Telegraph (AT & T) that was broken up into seven regional phone companies. The government stepped in because of the long eight gear battle. AT & T agrees formed seven operating companies. The new AT & T was faced with new competition from MCL, Sprint, Mitel, and Northern Telecom. If the government did not stepped in the other companies that AT & T were facing competition would have not have the chance to compete in the market for long distance service. This allowed other firms to share the market. 4. Propose two (2) methods of identifying groups of customers who should receive a discount for a product or service without alienating consumers. Age and by how often people shop is two methods of identifying groups of customers who should receive a discount for a product without alienation consumers. These customers should receive a discount because of their loyalty. If they know they are getting some type of discount, they will come. This will also cut back on the marketing cost. 5. Suggest three (3) reasons a monopoly may or may not be efficient in any economy. A monopoly is when a single firm serves the entire