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- tue or false? after an industry is regulated by federal regulatory agency, companies in the industry can maintain their long run vaibility by continuing to focus on making better products or services.T/F There is a asymmetric knowledge in the monopoly market among the buyers and sellers.Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry. A patented invention A popular but easily copied restaurant recipe An industry where economies of scale are very small compared to the size of demand in the market A well-established reputation for slashing prices in response to new entry A well-respected brand name that has been carefully built up over many years
- Classify the following as a government-enforced barrier to entry, a banker to entry that is not government enforced, or a situation that does not involve a barrier to entry. A City passes a law on how many licenses it will issue for taxicabs A city passes a law that all taxicab drivers must pass a driving safety test and have insurance A well-known trademark Owning a spring that offers very pure water An industry where economies of scale are very large compared to the size of demand in the marketWhy is healthcare one of the worst industries affected by market failure?Figure 15-2 (attached) 24. Refer to Figure 15-2. If a regulator requires the firm to charge a marginal cost price, what price will the firm charge?
- There is a chance of creating defamation by deliberately discussing false information that may harm the beliefs or opinions that are generally held about someone or some organization. O Slander O Libel O Damaging O DisruptiveWhat is meant by a regulatory taking?Give examples of tactics practiced by a buyer or seller that might be consideredunethical.
- To what extent would you consider the setting up of regulatory bodies an appropriate and effective solution to the principal-agent problem in markets where there is a natural monopoly?In cost plus regulation, regulators calculated the average cost of production, added in an amount for the normal rate of profit the firm should expect to earn, and set the price for consumers accordingly. In price cap regulation, the regulator sets a price that the firm can charge over the next few years. What is the problem of price cap regulation? Group of answer choices It will cause long term certainty in the market. It will not work if the price regulators set the price cap unrealistically low. It will not work if the price regulators set new prices every six months. Low level managers will have too much power.a) In 1938 Congress amended the FTC Act. What additional power did this amendment create? b) What is the economic rationale for consumer protection regulation? c) What issue was addressed by the Robinson-Patman Act?