APMic Unit 6 Lesson 3 The Effects of Government Intervention in Different Market Structures by jclerch https://padlet.com/jclerch/87oqck7rr2hh Market Failure and the Role of Government en-us 2019-07-25 00:48:22 UTC 2026-01-16 17:34:10 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/43db095c7cdd7c4c483827d52c152c51/IMG_12291.png Essential Knowledge jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/372215964 Per-unit taxes and subsidies affect the total price consumers pay, net price firms receive, equilibrium quantity, consumer and producer surpluses, deadweight loss, and government revenue or cost. The impact of change depends on the price elasticity of demand and supply.

Lump-sum taxes and lump-sum subsidies do not change either marginal cost or marginal benefit; only fixed costs will be affected.

Binding price ceilings and floors affect prices and quantities differently depending on the market structures (perfect competition, monopoly, monopolistic competition, and monopsony) and the price elasticities of supply and demand.

Government intervention in imperfect markets can increase efficiency if the policy correctly addresses the incentives that led to the market failure.

Government can use price regulation to address inefficiency due to monopoly.

A natural monopoly will require a lumpsum subsidy to produce at the allocatively efficient quantity.

Governments use antitrust policy in an attempt to make markets more competitive.
]]> 2019-07-25 00:53:29 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/372215964 Enduring Understanding jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/372216057 In imperfect markets, well-designed government policy can reduce waste.]]> 2019-07-25 00:54:20 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/372216057 Learning Objectives jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/372216084 Define government policy interventions in imperfect markets.

Explain (using graphs where appropriate) how government policies can alter market outcomes in perfectly and imperfectly competitive markets.

Calculate (using data from a graph or table as appropriate) changes in market outcomes resulting from government policies in perfectly competitive and imperfectly competitive markets.
]]> 2019-07-25 00:54:35 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/372216084 Questions jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/372216125
  • What is the difference between taxes and subsidies? Subsidies and welfare?
  • When is it possible for per-unit taxes and subsidies to reduce deadweight loss? 
  • What are the short-term and long-term effects of lump-sum taxes on a market? 
  • What is wrong with price controls? 
  • What are ways that governments can intervene in imperfectly competitive markets and improve them? 
  • How should government regulate a natural monopoly? 
  • How does antitrust policy work? 
    • ]]>     2019-07-25 00:54:56 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/372216125     jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/372216904 There is no Quizlet for this lesson because the lesson is really a combination of a variety of different lessons. ]]> 2019-07-25 01:01:50 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/372216904 jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/396902132 2019-10-11 22:15:27 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/396902132 jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/493393991 2020-04-05 16:04:30 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/493393991 jclerch https://padlet.com/jclerch/87oqck7rr2hh/wish/693530475 2020-08-23 20:11:04 UTC https://padlet.com/jclerch/87oqck7rr2hh/wish/693530475