1. ECO 550 Week 8 Assignment 2 Expansion
and Merger
Click this link to get the tutorial:
http://homeworkfox.com/tutorials/economics/4284/eco-550-
week-8-assignment-2-expansion-and-merger/
Assignment 2: Expansion and Merger
Due Week 8 and worth 200 points This paper is a continuation of Assignment 1. Assume that
the industry you wrote about in Assignment 1 wants to expand and that its only option is a
merger. Now the industry is confronted with government regulations to oversee the merger.
Write a four to five (4–5) page paper in which you:
Explain why government regulation is needed, citing the major reasons for government
involvement in a market economy. Justify the rationale for the intervention of government in the
market process in the U.S. Assuming that the merger faces some threats and that the industry
decides on self-expansion as an alternative strategy, describe the additional complexities that
would arise under this new scenario of expansion via capital projects. Analyze how the different
forces will come together to create a convergence between the interests of stockholders and
managers. Speculate about the implications for the goals of the firm as to whether to maximize
the industry’s profits or to create more value for the shareholders. Use at least three (3) high-
quality academic resources in this assignment.
Note: Wikipedia and other Websites do not qualify as academic resources.