Problems
industry? Why or why not? 28 . What would be evidence of serious competition between firms in an industry? Can you identify two highly competitive industries? 29 . Can you think of any examples of successful in the real world? 30 . If you were developing a product (like a web browser) for a with significant , how would you try to get your product into the successfully? 31 . In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated . What do you suppose caused the change? 32 . Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make sense to you? 33 . , like all changes in government policy, always has pluses and minuses. What do you think some of the minuses might be for airline ? 34 . Do you think it is possible for government to outlaw everything that businesses could do wrong? If so, why does government not do that? If not, how can regulation stay ahead of rogue businesses that push the limits of the system until it breaks?
Problems
35 . Use to calculate the for the U.S. auto . Does this indicate a concentrated or not? GM 19% Ford 17% Toyota 14% Chrysler 11% TABLE 11.5 Global Auto Manufacturers with Top Four U.S. , June 2013(Source: http://www.zacks.com/ commentary/ 27690/auto- industry-stock- outlook- june-2013) 36 . Use and to calculate the Herfindahl-Hirschman Index for the U.S. auto . Would the FTC approve a between GM and Ford? Honda 10% Nissan 7% Hyundai 5% Kia 4% Subaru 3% Volkswagen 3% TABLE 11.6Global Auto Manufacturers with additional U.S. , June 2013(Source: http://www.zacks.com/ commentary/27690/ auto-industry-stock- outlook-june-2013) Use to answer the following questions. 37 . If the transit system were allowed to operate as an unregulated , what output would it supply and what would it charge? 38 . If the transit system were regulated to operate with no subsidy (i.e., at zero ), what approximate output would it supply and what approximate would it charge? 39 . If the transit system were regulated to provide the most allocatively efficient quantity of output, what output would it supply and what would it charge? What subsidy would be necessary to ensure this efficient provision of transit services?
FIGURE 12.1Environmental Debate Across the country, countless people have protested, even risking arrest, against the Keystone XL Pipeline. (Credit: modification of "People Arrest at State Department Office in Boston Protesting Keystone XL Pipeline" by NoKXL/Flickr, CC BY 2.0)
In this chapter, you will learn about:
- The of Pollution
- -Oriented Environmental Tools
- The Benefits and Costs of U.S. Environmental Laws
- International Environmental Issues
- The Tradeoff between Economic Output and Environmental Protection
BRING IT HOME Keystone XL You might have heard about Keystone XL in the news. It was a pipeline system designed to bring oil from Canada to the refineries near the Gulf of Mexico, as well as to boost crude oil in the United States. While a , TransCanada, planned to build and own the pipeline, U.S. government approval was required because of its size and location. There were four phases in plans to build the pipeline, and the first two of these had been in operation. Sounds like a great idea, right? A pipeline that would move much needed crude oil to the Gulf refineries would increase oil for manufacturing needs, reduce pressure at the gas pump, and increase overall economic growth. Supporters argued that the pipeline would be one of the safest pipelines built yet, and would reduce America’s dependence on politically vulnerable Middle Eastern oil . Not so fast, said its critics. The Keystone XL would be constructed over an enormous aquifer (one of the largest in
Text from Principles of Microeconomics 3e, OpenStax, licensed CC BY-NC-SA 4.0. Access for free at openstax.org.
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