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Impact of government regulation on extraction of natural resources

1. Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers also congestion in New York streets.

2. In the interest of conservation it has often been argued there must be government regulation of the extraction of natural resources such as timber also government regulation to protect endangered wildlife. Elucidate why also describe how, in a free marketplace economy, these resources are already regulated also comment on the pitfalls to either form of regulation.

Economists Armen Alchian also Reuben Kessel have advanced the hypothesis which monopolists choose to satisfy more of their non-pecuniary aims than do perfect competitors. Consider the following aims: (a) exercising their preferences against certain minorities, (b) enjoying the good life with lush expense accounts for executives. Elucidate what theoretical arguments could support this hypothesis? Elucidate how might you test this hypothesis?

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Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M920365

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