Ralph Nader, a member of the school board in San Joaquin County, is appalled at the amount of junk food in the schools. He convinces the state legislature to pass an ordinance that no stores may sell any unhealthy, junk food within 500 feet of any school, including colleges or day care centers. A professor of business law raises the issue of whether the regulation is valid and is told that it is a valid exercise of the jurisdiction's police power to protect its citizens. Convenience stores. balk at the regulation and challenge it in court. What concept is addressed in regard to the reference to "police power"? O The residual powers retained by the federal government to enforce valid laws and regulations. O The powers granted to state governments to tax for the purposes of having law enforcement. O The powers granted to local government to enter residences without a search warrant.

Ralph Nader, a member of the school board in San Joaquin County, is appalled at the amount of junk food in the schools. He convinces the state legislature to pass an ordinance that no stores may sell any unhealthy, junk food within 500 feet of any school, including colleges or day care centers. A professor of business law raises the issue of whether the regulation is valid and is told that it is a valid exercise of the jurisdiction's police power to protect its citizens. Convenience stores. balk at the regulation and challenge it in court. What concept is addressed in regard to the reference to "police power"? O The residual powers retained by the federal government to enforce valid laws and regulations. O The powers granted to state governments to tax for the purposes of having law enforcement. O The powers granted to local government to enter residences without a search warrant.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 7SCQ: From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural...

See similar textbooks

Similar questions

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 describes the type of entry barrier faced for taxicabs? A. There is a natural entry barrier for taxicabs because entry into the market has been limited through price cutting B. There is a natural entry barrier for taxicabs because entry into the market has been limited through quotas. C. There is a created entry barrier for taxicabs because entry into the market has been Ilimited through quotas. D. There is a created entry barrier for taxicabs because entry into the market has been limited through limited access to key natural resources.
Ch Suppose that there are only three types of fruit sold in the United States. Annual sales are 1,200,000 tons of blueberries, 5,400,000 tons of strawberries, and 12,000,000 tons of bananas. Suppose that of those total amounts, the Sunny Valley Fruit Company sells 1,100,000 tons of blueberries, 900,000 tons of strawberries, and 9,200,000 tons of bananas. Instructions: Round your answers to two decimal places. a. What is Sunny Valley's market share if the relevant market is blueberries? percent If a court applies the "90-60-30 rule" when considering just the blueberry market, would it rule that Sunny Valley is a monopoly? (Click to select) b. What is Sunny Valley's market share if the relevant market is all types of berries? percent Would the court rule Sunny Valley to be a monopolist in that market?
From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural monopoly? Justify. Use the following information to answer the next three questions. In the years before wireless phones, when telephone technology requited having a wile matting to every home, it seemed plausible that telephone service had diminishing average costs and might require regulation like a natural monopoly. For most of the twentieth century, the national U.S. phone company was AT&T, and the company functioned as a regulated monopoly. Think about the deregulation of the U.S. telecommunications industry that has occurred over the last few decades. (This is not a research assignment, but a thought assignment based on what you have learned in this chapter.)
Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make sense to you?
In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?
Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market for this case was the market for intercity bus service. Another possible definition was the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.' Which definition do you think the bus companies preferred, and why?
Classify the following as a government-enforced barrier to entry, a banker to entry that is not government enforced, or a situation that does not involve a barrier to entry. A City passes a law on how many licenses it will issue for taxicabs A city passes a law that all taxicab drivers must pass a driving safety test and have insurance A well-known trademark Owning a spring that offers very pure water An industry where economies of scale are very large compared to the size of demand in the market
Why would a firm choose to use one or more of the anticompetitive practices described in Regulating Anticompetitive Behavior?
Imagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?
A movie production company is planning to make its new movie available online so that it can enjoy monopoly power. Each time the movie is downloaded the production company has to pay 4 taka to the internet service provider. Now it is deciding what price to charge for each download. The numbers below shows the demand schedule for the company, Price per download dollar - 10, 8, 6, 4, 2, 0. Quantity of downloads demands 0, 1, 3, 6, 10, 15. a) Calculate the total revenue and marginal revenue per download. b) To maximize profit what price should be charged and how many downloads would need to be sold?
Briefly explain two ways through which the governmen can respond to the problem of monopoly (25)word for each policy