Was such cross- subsidization in the public interest

Reference no: EM13926177

1. Given the inevitable limit on airplane landings, how should available airport slots be allocated? How would market outcomes be altered?

2. Why would a profit-regulated firm want to sell itself in- puts at inflated prices? Or increase wages?

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

4. In most cities local taxi fares are regulated. Should such regulation end? Who would gain or lose?

5. How would you put dollar values on the benefits and costs of truck safety regulations (News, p. 288)? Do ben- efits exceed costs?

6. The Telecommunications Act of 1996 requires local phone companies to charge "reasonable" rates for trans- mission access. What is a "reasonable" rate?

Reference no: EM13926177

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