A British waste management company acquired two other companies that specialized in disposal of hazardous wastes even though the two companies were losing money. Planning and regulatory requirements in the United Kingdom make it difficult for firms to establish new hazardous waste landfills, and the combined companies would control most hazardous waste landfills in some parts of the country. How do the planning and regulatory requirements affect the market for hazardous waste?
A. They create a burden on the company, and so it probably will lobby to repeal them.
B. They help the merged companies because it will be expensive for other firms to enter the market to compete with them.
C. They make the market for hazardous waste disposal into a monopolistically competitive market.
D. They make the market for hazardous waste disposal into a contestable market.
Answer: B
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A tariff is a
A) legal limit on sales of a foreign product in the domestic market. B) regulation of the quality of a foreign product sold in the domestic market. C) tax on sales of a foreign product in the domestic market. D) voluntary limit on sales of a foreign product in the domestic market.
U.S. U.K Wheat 12 6 Cloth 6 18 The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour). In order for both countries to gain from trade, one bushel of wheat must trade for
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