The Economics of Pollution essay

The Economics of Pollution By the end of this section, you will be able to: • Explain and give examples of positive and negative externalities • Identify equilibrium price and quantity • Evaluate how firms can contribute to market failure From 1970 to 2012, the U.S. population increased by one-third and the size of the… Continue reading The Economics of Pollution essay

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International Environmental Issues

International Environmental Issues By the end of this section, you will be able to: • Explain biodiversity • Analyze the partnership of high-income and low-income countries in efforts to address international externalities Many countries around the world have become more aware of the benefits of environmental protection. Yet even if most nations individually took steps… Continue reading International Environmental Issues

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The Four Firm Concentration Ratio

The Four-Firm Concentration Ratio Regulators have struggled for decades to measure the degree of monopoly power in an industry. An early tool was the concentration ratio, which measures the combined market share (or percent of total industry sales) which account for the largest firms (typically the top four to eight). For an explanation of how… Continue reading The Four Firm Concentration Ratio

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Approach to measuring industry concentration

Another approach to measuring industry concentration that can distinguish between these two cases is called the Herfindahl-Hirschman Index (HHI). We calculate HHI by summing the squares of the market share of each firm in the industry, as the following Work It Out shows. Chapter 11 | Monopoly and Antitrust Policy 259   http://openstaxcollege.org/l/Google_FTC   Calculating… Continue reading Approach to measuring industry concentration

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Monopoly and Antitrust Policy

Monopoly and Antitrust Policy This OpenStax book is available for free at http://cnx.org/content/col12170/1.7     two U.S. firms announce a merger or acquisition where at least one of the firms is above a minimum size of sales (a threshold that moves up gradually over time, and was at $76.3 million in 2015), or certain other… Continue reading Monopoly and Antitrust Policy

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Command and Control Regulation

Command-and-Control Regulation By the end of this section, you will be able to: • Explain command-and-control regulation • Evaluate the effectiveness of command-and-control regulation When the United States started passing comprehensive environmental laws in the late 1960s and early 1970s, a typical law specified to companies how much pollution their smokestacks or drainpipes could emit… Continue reading Command and Control Regulation

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Regulating Natural Monopolies

Regulating Natural Monopolies By the end of this section, you will be able to: • Evaluate the appropriate competition policy for a natural monopoly • Interpret a graph of regulatory choices • Contrast cost-plus and price cap regulation Most true monopolies today in the U.S. are regulated, natural monopolies. A natural monopoly poses a difficult… Continue reading Regulating Natural Monopolies

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Regulating Anti competitive Behavior

Regulating Anticompetitive Behavior By the end of this section, you will be able to: • Analyze restrictive practices • Explain tying sales, bundling, and predatory pricing • Evaluate a real-world situation of possible anticompetitive and restrictive practices The U.S. antitrust laws reach beyond blocking mergers that would reduce competition to include a wide array of… Continue reading Regulating Anti competitive Behavior

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