(2)
If you had to argue that the diamond business in South Africa was a natural monopoly, what reasons would you give? Why would you think that the South African government is keen on keeping the diamond monopoly intact?
(3)
Explain why it is that high-powered regulation encourages cost cutting by the regulated firms while low-powered regulation does not. What is meant by high and low-powered regulation of monopolies or dominant firms?
(4)
What is regulatory capture? What is Rent-seeking? Why do you think that regulatory capture is so prevalent in representative democracies where market power exists among large firms?
(5)
Explain what we mean is when we say that the existence of monopoly prevents: inefficient use of resources (factors of production
(2)
If you had to argue that the diamond business in South Africa was a natural monopoly, what reasons would you give? Why would you think that the South African government is keen on keeping the diamond monopoly intact?
(3)
Explain why it is that high-powered regulation encourages cost cutting by the regulated firms while low-powered regulation does not. What is meant by high and low-powered regulation of monopolies or dominant firms?
(4)
What is regulatory capture? What is Rent-seeking? Why do you think that regulatory capture is so prevalent in representative democracies where market power exists among large firms?
(5)
Explain what we mean is when we say that the existence of monopoly prevents: inefficient use of resources (factors of production
