A. deregulation
B. making markets contestable
C. natural monopoly.
D. cross-subsidization.
Applied Microeconomics
Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
A. Persuade the regulator to operate in the industry’s interests
B. Persuade the regulator to act in the firms interests.
C. Bribe the regulator.
D. Persuade the government to change the regulatory regime.
Between 1990 and 1999 car ownership per thousand of the population fell in ?
A. Spain
B. Belgium
C. USA
D. UK
The external benefits of using cars are …. and the external costs are …..?
A. low; low
B. high; high
C. low; high
D. high; low
Antimonopoly laws are based on the proposition that ?
A. increasing market power is the best way to achieve efficiency.
B. competition is the best way to achieve efficiency.
C. public ownership is the best way to achieve efficiency
D. regulation is the best way to achieve efficiency.
A conglomerate merger is a merger of ?
A. firms producing the same product
B. firms at various stages in production process.
C. firm producing complementary products
D. firms producing unrelated products.
Sales staff are keen to sell extended warranties because ?
A. extended warranties offer value for money.
B. the cost of repair will usually exceed the cost of the warranty
C. they are paid commission on each extended warranty they sell.
D. They are concerned about customer satisfaction.
In the UK, electricity industry parts are a …. and other parts are … ?
A. nationalized; privatized
B. natural monopoly; potentially competitive
C. cartel; a sellers’ market
D. monopolistic competition duopoly
Antimonopoly legislation is undertaken to …. competition and market regulation is undertaken to …. competition ?
A. restrict; promote
B. restrict; restrict
C. promote; promote
D. promote; restrict
The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
A. p = Z
B. P = MC + Z
C. p = MC
D. P = MC – Z