Homework SourseThe mayor of new monopoly realizes that the congestion at th
The mayor of new monopoly realizes that the congestion at the port cost the shipping companies and his town money. Which decision would not move him towards a command economy?
The mayor order the port\'s employees to work extra hours
The mayor decides to only allow the five most profitable shipping companies to use the port
The mayor decides to let individuals firms and consumer find a solution for the excessive wait time
The mayor of new monopoly realizes that the congestion at the port cost the shipping companies and his town money. Which decision would not move him towards a command economy?
The mayor order the port\'s employees to work extra hours
The mayor decides to only allow the five most profitable shipping companies to use the port
The mayor decides to let individuals firms and consumer find a solution for the excessive wait time
The mayor order the port\'s employees to work extra hours
The mayor decides to only allow the five most profitable shipping companies to use the port
The mayor decides to let individuals firms and consumer find a solution for the excessive wait time
Solution
The congestion at the port that resulted into rise in the cost of operation indicates that there is excess demand from shipping companies with respect to given capacity provision. To resolve the problem, the mayor can choose either option (1), (2) or both but he cannot chose (3) in order to move toward command economy.
The command economy is the one in which economic activities are regulated by the central authority. Hence, taking the perspective under consideration, the following are the reason for choosing option (3):
Hence, the answer to the problem is (3).
