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Subsidization in the public interest

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1. Prior to 1982, AT&T kept local phone rates low by subsidizing them from long-distance profits. Was such cross subsidization in the public interest? Explain.

2. How would you put dollar values on the benefits and costs of truck safety regulations? Do befits exceed costs?

3. The Telecommunications Act of 1996 requires local phone companies to charge "reasonable' rates for transmission access. What is a "reasonable" rate?

4. How could a local phone or cable company reduce service quality if forced to accept price ceilings?

5. Should the Justice Department have approved the merger of American Airlines and U.S. Airways in 2013? Who gained and who lost from the merger

Reference no: EM131795292

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