What are the major rationales for consumer protection in nonmonopolistic industries?
What will be an ideal response?
The main rationales for consumer protection in nonmonopolistic industries are: (1 ) the presence of market failures, which induce governments to correct the externalities; and (2 ) the presence of asymmetric information for certain products so that the government can ensure consumers are protected.
You might also like to view...
What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties, and fewer used textbooks are sold?
a. Price will rise. b. Price will fall. c. Price will stay exactly the same. d. The price change will be ambiguous.
When a country participates in international trade, its consumption possibilities
A. Always exceed its production possibilities. B. Must still equal its production possibilities. C. Will increase if it is a rich country and will decrease if it is a poor country. D. May increase, but its trading partners consumption possibilities will decrease.
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.
The demand curve facing the monopolist is
A) the same as the market demand curve. B) more elastic than the market demand curve. C) less elastic than the market demand curve. D) upward sloping.