Microeconomics

Truck regulation was needed in the 1930s because of economies of scale

Truck regulation was needed in the 1930s because of economies of scale in trucking. Indicate whether the statement is true or false   ANSWER F Truck regulation was introduced because otherwise truck competition would have destroyed the value-of-service pricing railroads used to cover their substantial fixed costs.  

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Date: September 9th, 2020

Transitions from one technology to another can be easier for a network

Transitions from one technology to another can be easier for a network industry when frequency is not actually owned by those with rights to use it. Indicate whether the statement is true or false   ANSWER T In principle, government regulators have more power over those who use but do not own frequency. But F […]

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Date: September 9th, 2020

When the value of operating authority fell to zero after trucking dere

When the value of operating authority fell to zero after trucking deregulation, that was a sign that deregulation would not work well. Indicate whether the statement is true or false   ANSWER F Having the value of operating authority fall to zero because of trucking deregulation indicates that regulation created artificial value for the right […]

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Date: September 9th, 2020