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Government 1B Lesson 20: Answering 2 topic questions for this essay

1.) What are some of the problems with the concept of public goods?

Public Goods is something that is non‐excludable and something that can’t be competed with. A Free Rider is someone who wants others to pay for a public good, but plans to use the goods for themselves. If many people act as free riders, the public goods may never be provided. Bottom line about this question is that its a problem when there’s a good that’s available to everyone.

For example, a lighthouse is built to guide their ships in the right direction, since the light is so bright and can be seen from all sides and directions of the sea, this means that any boat passing by can use the light from the lighthouse to guide themselves in the right direction as well. Meaning that any boats on the sea can use the benefits of the lighthouse.

2.) What are the main points of the article “The Misplaced Fear of ‘Monopoly'”?

A lot of people can agree with me on the fact that there are so many Americans that have a fear of and a certain hatred for monopolies, especially those dreaded 19th century monopolies owned by “robber barons”: Vanderbilt, Rockefeller, Carnegie, and others. They are widely considered to be mean, selfish capitalists who completely take over any given market and then drive their prices up drastically, so now the poor consumers have to shell out a fortune to these evil “robber barons”.

Let’s say Walmart gets a monopoly in pharmaceuticals. If they suddenly raise the prices, they’ll get a huge profit. This means that they will have to sell less pharmaceuticals to make the money. But the suppliers of the drugs, won’t want this, because Walmart won’t buy as many drugs from them anymore. Merck can actually prevent Walmart from selling their drugs at such high prices by writing up a sales contract stipulating the maximum price allowed for retail sales. That’s another point in which the suppliers won’t allow monopoly.

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