ABSTRACT
When you are finished with this chapter you should understand:
The “deadweight loss” rationale for government regulation of prices.
Arguments against government regulation of prices.
The distinction between natural monopolies and legally created monopolies.
The two measures of market concentration: the concentration ratio and the Herfindahl-Hirschman Index.
Government policy toward mergers and acquisitions and the role of anti-trust legislation.
Government policy to control pollution.
