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How does the government regulate and deregulate? What are two examples of how the government regulates and deregulates the industry?
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- If you were developing a product (like a web browser) for a market with significant barriers to entry, how would you try to get your product into the market successfully?When governments deregulate an industry, using economic theory, explain what governments want to achieve in terms of social-well being.How would you describe the development of the market regulation and the concept of "fair competition" in the market?
- When does a company officially become a monopoly? a. when it controls more than 25 percent of the output of a certain product b. when the government decides the company is a threat to the national economy c. when a company controls the output for a marketable product without meaningful competition d. when a company controls more than 50 percent of the output of a productWhy and how do governments regulate natural monopolies? Examine the strengths and weaknesses of different types of regulation. In the light of your analysis what recommendations would you make for government policy?Classify the following as a government-enforced barrier to entry, a barrier to entry that is not governmentenforced, or a situation that does not involve a barrier to entry. a. A city passes a law on how many licenses it will issue for taxicabs b. A city passes a law that all taxicab drivers must pass a driving safety test and have insurance c. A well-known trademark d. Owning a spring that offers very pure water e. An industry where economies of scale are very large compared to the size of demand in the market
- Which of the following is least likely to present a barrier to entry into a market? A. Patent laws B. Technological advantages C. Economies of scale D. Products are considered identicalAre all markets regulated or deregulated?H11. if competition is so beneficial for society, why does the U.S. Government all and promote monopolies from forming and controlling the market?
- With the aid of an appropriate diagram, discuss why should a monopoly beregulated by the government?Why does monopoly need to be regulated?Critically evaluate and explain each statement:a. Because they can control product price, monopolists are always assured of profitable production by simply charging the highest price consumers will pay.b. The pure monopolist seeks the output that will yield the greatest per-unit profit. c. An excess of price over marginal cost is the market’s way of signaling the need for more production of a good. d. The more profitable a firm, the greater its monopoly power. e. The monopolist has a pricing policy; the competitive producer does not. f. With respect to resource allocation, the interests of the seller and of society coincide in a purely competitive market but conflict in a monopolized market. g. In a sense the monopolist makes a profit for not producing; the monopolist produces profit more than it does goods.
