Currently doing an assignment where we have to implement government policy to fix market failures. In my paper I'm doing the market for alcohol, which means that the MSB<MPB. The government policy I want to implement as a solution is a systembolaget style market monopolisation, but I don't know how to show this on a MC/MB model. Is this possible? Would I use the model for a monopoly where MC=MSC and AR=MPB?
And for the record, I do understand that /pol/ knows nothing about economics. I just know I'll get faster responses here than I will on /biz/
This is now a Gordon thread
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>>139211603
I did Chinese Air Pollution for my 3.4
>>139211603
>I want to implement as a solution is a systembolaget style market monopolisation,
Just do Alcohol Tax or liquor Licenses or do you have to do something that is not currently done
>>139211603
Simple. The market cannot fail. The government cannot fix it.
>>139211826
beat this
>>139211603
>implement government policy to fix market failures
Gee anon, no fucking problem at all with that statement. Maybe you should look into the 2007/2008 recession. Nevermind that the US government gave money to the top banks to stop the recession, hoping that the banks would do the right thing! What followed was all part of the plan right?
>>139211603
>implement government policy to fix market failures
What about market SUCCESS? Look up the alcohol rebellion in the US in the late 1700s. What happens if a market becomes too successful? The government shuts it down and regulates it. What happens if a market fails? The government gives it a stimulus and regulates it.
Maybe anon, the problem isn't whether or not a market fails or succeeds. Maybe the problem is the government? Hmmm?
>>139211826
>>139211991
>>139212172