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In an economy the government regulation is necessary .
Explain the statement and justify at which limits this statement is true
Step by step
Solved in 3 steps
- Which of the following is not one of the three basic situations in which regulation is imposed? a. externalities b. natural monopoly c. price fixing d. imperfect informationexplain IET(International Economic Transactions) cycles as a factor modifying the limits of state regulation.Explain natural monopoly in case of public production of private goods.
- explain natural monopoly in case of public production of private goods. with the help of graphWhen governments deregulate an industry, using economic theory, explain what governments want to achieve in terms of social-well being.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
- Explain the economic case for social regulation that is based upon externalities. What is the meaning attached to market failure in this context?selects and explains how the selected type of regulation works and how the government achieves social efficiency through its implementation.Some economists argue that government intervention is needed in addressing the issue of market failure. Yet governments also sometimes fail to implement policies or regulations properly and effectively. Explain why this situation can occur. Please discuss and with diagram if possible Subject : Industrial Regulation
- P, MR, Costs A B ATC MC Q4 Q3 Q2 QI Output MR Suppose the government tries to limit monopoly power with price regulation. The most effective regulatory price is: A D ВWe already know what the standard monopoly graph looks like. Academically speaking, what does a government run monopoly graph for Social Security and Medicare look like? Mulitple Choice a. In Microeconomics the government doesn't have a monopoly graph and they don't use the MC=MR formula b. The government uses the Price = AFC graph c. The government uses the cartel graph to represent government-run programs d. In Microeconomics the government uses the same monopoly graph as business and they use the MC=MR formulaWhat is regulatory capture? Explain and give an example of it.