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There are two of the discussion question threads to answer, and please each discussion write a short post (+200 words minimum).
1) Implicit Cost >> (+200 words minimum)
As discussed in your book, implicit costs are costs that do not require any monetary payment.
Offer an example of one of your implicit costs associated with taking this course.
Did you consider this implicit cost when you decided to register for this course? Why or why not?
Did this implicit cost affect how much time you have put into this course? If so, how has it affected your time investment in the course? If not, why not?
2) Regulating Natural Monopoly >> (+200 words minimum)
Although the government can use antitrust laws to split monopolies into smaller, competing firms, there are problems with this approach. Costs (and prices) will be higher for these smaller firms. Because of this, regulation is usually a preferred way of dealing with natural monopolies.
Offer an example of a natural monopoly.
Do you suspect that the firm’s prices are above its production cost? Is this due to the firm’s market power?
Does the firm you mentioned abuse its market power in other ways? If so, how?
Is this firm regulated by the government? If so, do you think these regulations have an effect on pricing?
Should the government impose additional regulations on the firm you mentioned? If so, what regulations? If not, why not?
How could new regulations improve on the current market outcome? Are there any trade-offs we make if we impose new regulations on this firm?
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