ECO 202 Microeconomics Question 1. Provide solutions for the following: a) Discuss the differences between a policy protecting competition...

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Economics

ECO 202 Microeconomics
Question 1. Provide solutions for thefollowing:
a) Discuss the differences between a policy protectingcompetition and policy protecting competitors.
b) Explain the concept of optimal pollution. Why might an ardentenvironmentalist and an economist have different views as to where\"optimal\" was?
c) Wind power is subsidized by the government with tax subsidiesand purchase mandates. Explain how externalities theory mightjustify such subsidies. Is the wind subsidy an example of cronycapitalism? Why or why not?
d) In what ways are unions similar and/or different frommonopolists?

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a As far as policy formulations are concerned it is always expected to protect the competition and not the competitors Protecting a competition means to protect the market and prevent the growth of an oligopoly or monopoly market system in an economy which may prove harmful in attaining an economic growth But protecting a competitor refers to any policy making process that protects any actions done by a competitor which may be dreadful for an economy The antitrust case filed against Google reiterates the fact that no government policy will intend to protect any competitor when the competition is unfair and hence protection of competition alone can form the part of a policy making process b Optimal See Answer

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