We know that competitive markets are Pareto efficient For a long period of time in British Columbia, firms like Uber and Lyft (which offer transportation services to individuals) were not allowed to operate, only taxis After defining a Pareto efficient allocation, explain how such a barrier to entry can prevent the maximization of total surplus but still lead to a Pareto efficient allocation Define what market power is and relate this concept to the inverse elasticity rule A monopolist on the University textbooks market considers entering two potential campuses Both campuses are similar in terms of demographics (age, origins of students) but they are too far away from each other for students to be in contact Moreover, in the second one instructors require students to own the most recent edition of the required textbook, whereas in the first campus students can own older versions of the textbook for their classes What campus will the monopolist prefer to enter A firm is able to perform first degree price discrimination in a market Consumers complain about it and ask the authorities to make this market perfectly competitive, but the authorities stay silent Why do consumers complain Why don't the authorities do something about the situation During the coronavirus pandemic of 2020, explain how the consumption of masks involves an externality Is it positive Negative Are there too many or too few masks being consumed compared to the socially efficient amount How can the socially efficient level be restored The BC provincial government has a child care policy in place, which consists in subsidizing parents for child care if their income is below a certain threshold Can this policy induce workers to change their hours Can it induce those who don't work to start working How can you change the policy to induce non working people to work The government is considering increasing payroll tax on workers earning beyond a certain rate per hour What are the possible consequences on labor supply of the targeted workers Can the government be sure it will increase its tax revenue this way Explain what an equivalence scale is and why it is used

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We know that competitive markets are Pareto efficient. For a long period of time in British Columbia, firms like Uber and Lyft (which offer transportation

We know that competitive markets are Pareto efficient. For a long period of time in British Columbia, firms like Uber and Lyft (which offer transportation services to individuals) were not allowed to operate, only taxis. After defining a Pareto efficient allocation, explain how such a barrier to entry can prevent the maximization of total surplus but still lead to a Pareto efficient allocation.
Define what market power is and relate this concept to the inverse elasticity rule.
A monopolist on the University textbooks market considers entering two potential campuses. Both campuses are similar in terms of demographics (age, origins of students) but they are too far away from each other for students to be in contact. Moreover, in the second one instructors require students to own the most recent edition of the required textbook, whereas in the first campus students can own older versions of the textbook for their classes. What campus will the monopolist prefer to enter?
A firm is able to perform first degree price discrimination in a market. Consumers complain about it and ask the authorities to make this market perfectly competitive, but the authorities stay silent. Why do consumers complain? Why don't the authorities do something about the situation?
During the coronavirus pandemic of 2020, explain how the consumption of masks involves an externality. Is it positive? Negative? Are there too many or too few masks being consumed compared to the socially efficient amount? How can the socially efficient level be restored?
The BC provincial government has a child care policy in place, which consists in subsidizing parents for child care if their income is below a certain threshold. Can this policy induce workers to change their hours? Can it induce those who don't work to start working? How can you change the policy to induce non-working people to work?
The government is considering increasing payroll tax on workers earning beyond a certain rate per hour. What are the possible consequences on labor supply of the targeted workers? Can the government be sure it will increase its tax revenue this way?
Explain what an equivalence scale is and why it is used.