1. What is the goal of antitrust policies?
2. If public utilities are a natural monopoly, what would be the danger in deregulating them?
3. If public utilities are a natural monopoly, what would be the danger in splitting them up into a number of separate competing firms?
4. Deregulation, like all changes in government policy, always has pluses and minuses. What do you think some of the minuses might be for airline deregulation?
5. Give an example of a positive externality and an example of a negative externality.
6. What is the difference between private costs and social costs?
7. What are the three problems that economists have noted with regard to command-and-control regulation?