Rapidly changing technology-what is a market failure
Course:- Microeconomics
Reference No.:- EM13700201

Assignment Help
Assignment Help >> Microeconomics

1. What type of compensation policy would you expect to observe in an industry with rapidly changing technology? Explain.

2. Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival successfully kept prices at a very high level. You recently learned that your rival retiring and closing his station in two weeks. What should you do today?

3. What is a market failure? Explain how externalities, public goods and asymmetric information are all problems with private property rights.

4. "The government should not be sole provider of a good or service unless there is a compelling reason." What compelling reason? Would you agree that issuing drivers licenses must be left to the government?

5. What does it mean to say "Profit opportunities attarct firms like sharks to blood?

6. Suppose a firm is selling a product for less than a foreign country does in the home country and an antidumping suit forces an end to the practice. Is it possible that the result is a loss in effciency? Explain.


7. Explain why rent-seeking competition tends to dissipate rents-to drive them down so that there are no abnormal rents.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
It has been argued that many of the problems with negative externalities - such as pollution, or the "tragedy of the commons" - could be better solved if there were clearly
In 2013, one article in the Wall Street Journal noted that: "The Fed's Board of Governors kept the discount rate unchanged at 0.75%," while another article predicted that: "
Samsung and Apple are two major producers of smart phones. Are these firms guaranteed to make high profits since they are the two largest firms in terms of market share in t
A publisher of financial management software offers full refunds to any dissatisfied purchaser. Is the refund policy a signal of product quality? Explain why, and how signalin
Write an essay discussing the meaning and importance of each of these principles as they apply to capital budgeting. Evaluate the importance of each principle and discuss th
Monetary policy is a hotly debated issue in government sectors. Decisions about these policies directly affect you as both a consumer, business person, and citizen. Discuss th
Calculate the monthly consumer surplus for each group before and after the rate increase. Your boss wants a measure of the losses to each group from the rate increase.
What factors make it difficult to determine the unemployment rate? Why is unemployment an economic problem? What are the non-economic effects of unemployment? Who loses from u