Economics homework?

[alyclark]

hi all! if u could answer 1 of or both of these questions i would really appreciate it!

1. Since the early 1980's thegovernment has somewhat relaxed its regulations regarding corporate mergers. Today, the FTC approves even some horizontal mergers . In theory, what would be the likely result if the government had NO regulations or control over corporate mergers and why would this result be a problem?

2. Give an example of a free-rider problem in reference to public goods.

[paia423]

1. Think about what would happen if Microsoft tried to acquire all of its competitors, what would happen? They would create a monopoly and would be able to charge whatever price they want. The government is in favor of competition and against monopolies.
2. Sending your children to a school in a district where you did not pay taxes (maybe through a friend or relative).

[d00tchy]

If gov't had no regulations or control policies over m&a's then it would not stop larger companies to ultimately gobble up the smaller players and become a monopoly.

A free rider example that involves a public good, such as clean breathable air. In California, everyone pays extra in gas tax to help keep our air clean. Free riders could exist by not using gasoline-consuming vehicles and opt for transportation alternatives. This creates a free rider problem because the clean air is shared and enjoyed by all, but not shared in cost equally.