What arguments can be made for government regulation of concentrated markets? What arguments can be made against such government regulation?
What will be an ideal response?
Arguments for government regulation generally rely on the fact that high levels of concentration lead to inefficiency and thus the government should act to improve the allocation of resources. Arguments against government regulation often point to the fact that the most effective barriers to entry are those which have been created by the government. Thus, the outcome with government involvement can end up less efficient than it would have with no government involvement.
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When the quantity of labor supplied is equal to the quantity of labor demanded at the equilibrium wage rate
A) frictional unemployment is zero. B) there is a lack of unemployment. C) the economy operates at full-employment output. D) the economy is at a peak point during an inflationary period.
Why do competitive firms enter the market in spite of the price war threatened by the dominant firm?
The Great Depression was the most severe recession experienced by the U.S. economy, during which national output had declined by 25 percent
a. True b. False Indicate whether the statement is true or false
A surplus exists in the market for Barbie dolls at the prevailing price. The surplus will be eliminated by a price: a. increase, decreasing the supply and increasing the demand
b. decrease, decreasing the supply and increasing the demand. c. decrease, increasing the quantity supplied and increasing the quantity demanded. d. decrease, decreasing the quantity supplied and increasing the quantity demanded.