Description
Economics discussion
ORIGINAL THOUGHTS ONLY
FOLLOW THE INSTRUCTIONS
200 WORDS OR MORE please for these discussions
Students need to contribute three substantive posts in this discussion by the due date indicated. The substantive posts can be any combination of responses and replies.
Watch the "Natural Monopoly" video.
Consider the following as you watch:
- When Alexander Graham Bell's patents expired, smaller phone companies sprang-up offering lower prices.
- Bell would not allow independents to use his long distance network. What was the government action?
Discuss your perceptions.
Students need to contribute three substantive posts in this discussion by the due date indicated. The substantive posts can be any combination of responses and replies.
Consider the following as you read:
- Why are monopolistic competitors only earning a normal profit in the long run?
- Why does monopolistic competition deliver neither productive nor allocative efficiency?
Discuss your perceptions.
Review this week’s course materials and learning activities, and reflect on your learning so far this week. Respond to one or more of the following prompts in one to two paragraphs:
- Provide citation and reference to the material(s) you discuss. Describe what you found interesting regarding this topic, and why.
- Describe how you will apply that learning in your daily life, including your work life.
- Describe what may be unclear to you, and what you would like to learn.
Students need to contribute two substantive posts in this discussion by the due date indicated. The substantive posts can be any combination of responses and replies.
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Explanation & Answer
Hello, please find the attached discussions. Please note that when you check the similarity, please do not include the questions. Thanks
When Alexander Graham Bell's patents expired, smaller phone companies sprang-up
offering lower prices. Bell would not allow independents to use his long distance network.
What was the government action?
Until expiration of the Bell's patents, there was a virtual monopoly of the AT&T
Company, which was new name of the company after acquisition of Western Union that started
offering telephone and telegraph lines. After expiration of Bell's patents the independent
companies (the companies offering services in the areas when Bell did not offer services) could
compete in the areas where Bell enjoyed monopoly. With multiple operators and their
consumers, there was a chaos in the telecom circles and callers under one operator often not
connected to the rival company's networks. It forced many businesses and individuals to go for
dual service.
The government (state legislatures) started coming up with its response of making
interconnection mandatory in 1904. In 1910, the interstate commerce act of 1887 was amended
by Mann Akins Act to bring the telecom and telegraph under jurisdiction of ICC. An antitrust
suit was...