The Public Service Commission of State X issued a regulation completely banning all advertising that “promotes the use of electricity” by any electric utility company in State X. The commission issued the regulation to conserve energy. Central Electric Corporation of State X challenges the order in the State courts, arguing that the commission has restrained commercial speech in violation of the First Amendment. Was the corporation’s freedom of speech unconstitutionally infringed? Explain.

The Public Service Commission of State X issued a regulation completely banning all advertising that “promotes the use of electricity” by any electric utility company in State X. The commission issued the regulation to conserve energy. Central Electric Corporation of State X challenges the order in the State courts, arguing that the commission has restrained commercial speech in violation of the First Amendment. Was the corporation’s freedom of speech unconstitutionally infringed? Explain.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter9: Monopoly

Section: Chapter Questions

Problem 1QFR

See similar textbooks

Similar questions

Explain natural monopoly in case of public production of private goods.
Describe the sources and extent of the power of the Federal and State governments to regulate business and commerce.
Definition of Economic Theory of Government Regulation
The EPA’s requirement that cars include pollutioncontrol devices is an example of government deregulation.True_____ False_____
Public goods area. efficiently provided by market forces.b. underprovided in the absence of government.c. overused in the absence of government.d. a type of natural monopoly.
Discuss TWO (2) primary need of government intervention for social regulation.
17- Intellectual property law is a body of law that includes Group of answer choices the right of inventors to produce their inventions the right of inventors to sell their inventions trademark, patent and trade secret legislation copyright legislation, as well as all of the above
Define market power, and then discuss the rationale for government regulation of firms with market power.
47. Doctors often complain that the patents of pharmaceutical companies make newer medicines hard to obtain and overpriced for their patients. This describes how the patents cause the new medicines to be artificially scarce common pool goods non-excludable perfectly competitive rival goods 48. What is the most likely goal of a government that enacts a lump-sum subsidy? To increase market competition To decrease market competition To correct for a negative externality To discourage production To encourage production
Environmental regulation was discussed for cases in which the market is unable to price risk correctly. In those cases, regulatory agencies are often tasked with evaluating risk and with administrating any regulations imposed. What does Public Choice Theory suggest might be the outcome of these bureaucratic processes in terms of the optimal level of regulation? Why?
Suppose an industry experience decreasing average costs of production over the relevant range of market demand. Discuss the merits of a regulation requiring the natural monopolist to set a price where demand equals marginal cost and to service all willing customers. What about where demand equals average cost? Are any practical difficulties likely to be encountered with either regulatory program?- Chapter 9 - Monopoly - Microeconomics
Explain with practical examples four problems that could prevent regulation from leading to the optimal allocation of resources