Answer to Question #125287 in Microeconomics for mamoona

Question

Q1. what kind of business practices can be considering as anti-competitive? what type of such activities Google was accused of in matrimony search controversy in india?
Q2. what kind of regulations can be used by the government for the google and microsoft? please explain with the help of diagram, the impact of heavy regulations on these companies?
Q3. As a manager of Google, you are required to prepare a response of allegation made against the company. what factors would you consider for the answer that you will be required to present in front of regulators?
Q4. using principles of economics, explain the following statements:
a. to help the public, government places the rent controls on apartments in islamabad restricting rent to PKR 30,000 per month.
b. according to opposition, government should guarantee the best healthcare options to people especially during this pandemic ( hint: equality and efficiency)

Answer 1

1.i)cartel conduct, anti-competitive agreements, exclusionary provisions (boycotts), misuse of market power, exclusive dealing and resale price maintenance.

ii)Google was accused of misuse of market power.

2.Public policy Monitoring

Taking a proactive approach

The socially optimal price Pr, found where D and MC intersect, will result in an efficient allocation of resources but may entail losses to the monopoly. The fair-return price Pf will allow the monopolist to break even but will not fully correct the underallocation of resources.

3.Adhereance to the anti competitive business policies

Giving other services equal opportunity like the Google services too

Giving advertisers fair prices to advertise their products.

4.A) Trade can make everyone better off since the owners of rentals get the rent and tenants get a fair price of rent.

B) The Principle of equality and efficiency, where the government should consider all the citizens of the country and give effective health care to them without favour