Competitive Market and Government Regulation 1. Please present your responses in good form. Support your work with appropriate references and in-text citations.
Use APA
throughout. Submit your assignment using MS Word only. Do NOT use PDF.
2. Submit only one copy per group. Add only the names of the group members present at the residency when this assignment was completed
. 3. Submit your written assignment via Moodle no later Sunday, February 17 at 11:00 PM EST. Late submission will
not be accepted.
4. Turnitin is active. Your Turnitin score need to be 25% or less. Turnitin score greater than 25% will be rejected and zero-grade
awarded.
Part A: How does government regulation affect the entry or exit of firms into the competitive market?
There has been much discussion that government regulations hinder the entry of firms in to the competitive market. Discuss the
pros and cons of government regulation. Support your discussion with appropriate references. No Wikipedia
Part B: What makes a competitive market?
In the section entitled Low Barriers to Entry, this chapter lists six characteristics for a competitive market that can help
an economy achieve the virtues of competition. The six characteristics are:
a) Many firms b) Identical products c) MC = p d) Low barriers to entry e) Zero economic profit f) Perfect information
However, these characteristics don’t always occur. Pick a market for a good or service with which you are familiar (for
example, college textbooks or car insurance—but don’t
use these examples). Be sure you select a good or service produced by firms operating to make a profit. Don’t pick something
produced by the government or a non-profit firm.
1) In the market, you selected, which characteristics are present?
2) Which characteristics are absent?
3) Pick one of the absent characteristics. Provide evidence to support your judgment that it is missing.
4) For one of the absent characteristics, you identified in (2), describe a government policy to remedy the shortcoming, so
that more of the virtues of competition could be achieved. Explain why production would be more efficient and why there would
be a more optimal mix of output.
Support your discussion with appropriate references. No Wikipedia
