ECO 365 Week 4 DQs

This pack of ECO 365 Week 4 Discussion Questions shows the solutions to the following problems:

DQ 1:

What is an externality? Provide examples. How does an externality affect the market outcome? Is it possible for a government’s solution to a market failure to actually worsen the failure? Explain your answer.

DQ 2:

What are the differences among horizontal, vertical, and conglomerate mergers? What does the U.S. government hope to achieve through the use of its antitrust policy? How do the resolutions of the IBM®, AT&T®, and Microsoft® antitrust cases differ? How does international competition affect domestic antirust policy?

DQ 3:

What is the cost/benefit approach that a typical economist takes to analyze regulations? What are the goals of taxation? How are economic policies impacted by politics, and how politics make a positive or a negative contribution to economic policy? How does antitrust policy and regulation affect economic welfare?

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