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Q1. The taxi fares in New York recently were raised by almost 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in the New York streets.

Q2. In the interest of conservation it has frequently been argued that there should be government regulation of the extraction of natural resources like timber and government regulation to protect the endangered wildlife. Describe why and how, in a free market economy, these resources are already regulated and comment on the pitfalls to either form of the regulation.

Economists Armen Alchian and Reuben Kessel encompass advanced the hypothesis that monopolists select to satisfy more of their non-pecuniary aims than do perfect competitors. Consider the given aims:

a) Exercising their preferences against the certain minorities.

b) Enjoying the good life with luxuriant expense accounts for executives. What theoretical arguments could support this hypothesis? How might you test the hypothesis?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M910141

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