Assignment: The health care industry wants to expand and that its only option is a merger. Now the industry is confronted with government regulations to oversee the merger.
Question 1. Why is government regulation is needed, what major reasons for government involvement in a market economy?
Question 2. What would be the rationale for the intervention of government in the market process in the U.S.?
Question 3. What would be the complexities if the industry decided not to merge?
Question 4. How would the different forces come together to create a convergence between the interests of stockholders and managers?
Question 5. What would be the implications for the goals of the industry as to whether to maximize the industry's profits or to create more value for the shareholders?