Economy

Pricella Stanbury Period 1 Mr. Reisman 26 September 2012 Honors Econ.: End-of-Chapter Questions Chapter 30 1. The governing body employ twain just policies and industrial regulations to deal with monopolies. They disaccord in cuddle because just policy consists of the laws and government actions intentional to prevent monopoly and press competition. The other approach, industrial regulation, which occur generally in inherent monopolies, consists of the government s regulation of a firms value/rate. The government decides to yes one give of remedy instead than the other by analyzing the structure of the application, the cost structure regarding the firm, the clash of the firs actions on competitors and customers, industry technology and the likelihood of new competitors entering the industry. 4. One presidency may say or enforce laws more stringently than another because of the differences in political philosophies about the marker scrimping and the wisd om of disturbance by government. A change of administrations mickle affect a major monopoly case in mount because if the administration believes in strong antitrust policies, the firm deal be dismantles scarce if the administration have a laissez faire emplacement on antitrust then the major monopoly can be acquitted. 5a. If there was a proposed merger of Ford and General Motors, the antitrust authority would glut this merger. 5b. If there were evidence of secret meetings by contractors to rig bids for alley construction projects, their firms would be charged with price fixing. 10. Industries that should be subjected to industrial regulation are industries with firms with natural monopolies conditions. The industrial regulation entails a few problems. An un regulated firm has a strong fillip to reduce its cost at apiece level of end product because it will increase profit. However, the regulatory commission limits firms to normal dough/fair returns based on t he value of its assets. If a regulated...If ! you indispensability to get a mount essay, order it on our website: BestEssayCheap.com

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