Discuss specific cases that lead to an increase in the concentration and market power from deregulation.
What will be an ideal response?
In the airline industry, deregulation in the 1970s initially increased entry and price competition. However, due to high fixed costs, hub dominance, and rival retaliation, the industry became more concentrated and firms have more market power. In the telecommunications industry, the high fixed costs of satellites have led to mergers and a decrease in the number of sellers in both long-distance and local telephone service.
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On a one-dollar bill the letter in the middle of the seal indicates the
a. currency printing batch b. year of planned removal from circulation c. district bank issuing the bill d. legal reserve requirement e. type of paper used
Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 5 units of capital and 10 units of labor are employed?
A. 11 B. 3 C. 4 D. 45
Consider the following figure that shows the demand and the cost curves of a perfectly competitive firm. The firm will earn zero economic profit _____. ?
a. ?at a price of P3 b. ?at a price between P1 and P2 c. ?at a price of P1 d. ?at a price above P1 e. ?at a price of P2
The Dodd-Frank Act attempts to prevent future financial crises by making major changes to the U.S. financial system, including
A. paying banks interest on their reserve holdings. B. increasing banks' reserve requirements. C. reducing the interest rates banks can charge their customers for loans. D. requiring the Federal Reserve to stress test banks' capital.