Problem
1. "Competition, not government, restricts firms from charging excessive prives. Over a period of time, competition will drive price down to the opportunity cost of producing the good. If government set the price even lower, shortages would result, and quality deterioration would be inevitable. If government fixed the price at a higher level, excess supply would result, and the consumer would be penalized. Government seeking to improve the competitive pricing mechanism is like Richard Nixon seeking to improve government ethics." Either defend or criticize the above statement. Explain your position carefully.
2. Outline your views of proper public policy that would both promote competitiveness and be consistent with economic efficiency. Explain why your program should be adopted.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.