Micro

The most important elements for achieving economic efficiency are

Business regulation and antitrust legislation are based on the notions of economic theory that imperfect competition is inefficient. The theory of imperfect competition suggests that

A natural monopoly occurs, theoretically, when

The purpose of regulating a natural monopoly or oligopoly is to control price and profits so that the industry

When airlines were deregulated in 1978

When Natural Gas prices were regulated at the well-head customers in the Midwest and New England

The legislation that prohibited banks from participating in investment banking (brokerage services) was the

For many years the Federal Reserve Bank set the maximum interest rate banks could offer on certain types of deposits and loans. This meant that

Regulating the price and profit of industries

To encourage regulated firms to produce up to the perfectly competitive solution, regulators might try to set prices equal to

If an industry is allocatively and technically efficient

The US economy changed dramatically after the Civil War. What event allowed firms to exploit economies of scale?

In the late 1800's firms banned together by

Firms banned together for many reasons. One was to bring order to competition in the market. In 1859 the price of a barrel of oil fluctuated from

By 1875 economies of scale in oil refining allowed an efficient refinery to process _____ barrels per day?