Eco 550 Long-Term Investment Decisions

Long-Term Investment DecisionsJune Chase, Anielli de Padua Guimaraes, & Jaye JonesProfessor Gil RamosECO 550: Managerial EconomicsJune 16, 2013Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.In a perfectly pure competition market where the market forces of supply and consumer demand are the most important and regulating factors, there is no need for government regulation. The consumer choice, price, and barring manipulation are truly what the market will bear. In reality there is human nature and the desire to be first along with the rugged individualism mentality which has become the hallmark of American Capitalism. The aggressive entrepreneurial or venture capitalist drive along with ready available capital produces the desire for most market ventures to be the fore runner. This is not an indictment of free market economy, however the badge of honor it wears. The problem emanates when the fore runner commences to execute unsavory tactics to stifle existing competition and block new entrants into the market controlling supply and fixing the price. Markets and market