Markets and Policies

Markets and Policies - Markets and Policies Robert McGill...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Markets and Policies Robert McGill BA 201 Microeconomics 4 April 2011 Markets and Policies 1. Under what circumstances, and why, would the government be opposed to a merger of two firms? How does the Justice Department decide which mergers to challenge? The Government would be opposed to the merger of two firms when the industry is  concentrated and the merger would be detrimental to consumer choice. The Government, generally, would be opposed to the merger of two firms when the post merger  HHI exceeds 1800 and the merger increase the index by more than 100 points. 2. Explain the difference between fixed-production technology and variable-production technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology? Should they do so in industries with variable technology? Fixed Production Technology occurs when the relationship between the output rate and the 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Markets and Policies - Markets and Policies Robert McGill...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online