Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Chapter 13, Problem 12SQ
To determine
The cause of the establishment of ICC.
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Students have asked these similar questions
Explain in brief.
a) Why government should intervention in a monopoly market.
b) Give a practical example of government intervention in the monopoly market.
1.
The problem with regulating a natural monopoly at marginal cost pricing is that
regulations are generally impossible to enforce.
the cost of regulation outweighs any potential benefits.
regulating a market causes more deadweight loss.
the monopolist firm will lose money and want to shut down.
2.
Suppose an oil refinery produces air pollution that negatively affects the surrounding residents. Which of the following is not a policy the government could take to correct this externality?
-Subsidize the refinery’s product.
-Require the refinery to pay for and install scrubbers so that no pollution is released.
-Estimate the damages caused by the pollution and force the refinery to pay that amount.
-Enact an excise tax on the refinery’s product.
Andrew Carnegie's monopoly in steel was never as complete as John D. Rockefeller's monopoly in oil. But even after the breakup of Standard Oil in 1914, monopolies kept developing -- including more "natural" monopolies such as Microsoft and Facebook. Why does the government of the USA continue to attempt to break up monopolies? What is the economic rationale?
A. Monpolies are inherently anti-consumer.
B. Monpolies are a natural consequence of technoogical innovation, and are seen by some economists as evidence of the superiority of capitalism because the market rewards competition.
C. Monopolies are problematic because of price-fixing, which is achieved mainly after they become established, not because of the aggressive competition required to out-compete rivals before market dominance is achieved.
D. All the above.
Chapter 13 Solutions
Economics For Today
Ch. 13.2 - Prob. 1YTECh. 13.6 - Prob. 1.1YTECh. 13.6 - Prob. 1.2YTECh. 13 - Prob. 1SQPCh. 13 - Prob. 2SQPCh. 13 - Prob. 3SQPCh. 13 - Prob. 4SQPCh. 13 - Prob. 5SQPCh. 13 - Prob. 6SQPCh. 13 - Prob. 7SQP
Ch. 13 - Prob. 8SQPCh. 13 - Prob. 9SQPCh. 13 - Prob. 10SQPCh. 13 - Prob. 11SQPCh. 13 - Prob. 12SQPCh. 13 - Prob. 1SQCh. 13 - Prob. 2SQCh. 13 - Prob. 3SQCh. 13 - Prob. 4SQCh. 13 - Prob. 5SQCh. 13 - Prob. 6SQCh. 13 - Prob. 7SQCh. 13 - Prob. 8SQCh. 13 - Prob. 9SQCh. 13 - Prob. 10SQCh. 13 - Prob. 11SQCh. 13 - Prob. 12SQCh. 13 - Prob. 13SQCh. 13 - Prob. 14SQCh. 13 - Prob. 15SQCh. 13 - Prob. 16SQCh. 13 - Prob. 17SQCh. 13 - Prob. 18SQCh. 13 - Prob. 19SQCh. 13 - Prob. 20SQ
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