BA 201 Markets and Policies

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  1. Under what circumstances, and why, would the government be opposed to a merger of two firms? How does the Justice Department decide which mergers to challenge? 

  

  1. Explain the difference between fixed-production technology and variable-production technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology? Should they do so in industries with variable technology?

 

  1. What is the “regulatory dilemma”? That is, what trade-offs do regulators have to consider when deciding how to control a natural monopoly?

 

  1. What is the underground economy? What is the impact on the underground economy of instituting a tax on a certain productive activity?
    • 12 years ago
    BA 201 Markets and Policies
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