Our staff of economists has assured us that this is the best way to serve the public, the stern but smiling man in the business suit said. He continued, Since this fee does not change the marginal cost of the firms, it will not affect production decisions and therefore will have no effect on the industry. Julius Genachowski, Chairman of the FCC, explains how the new yearly regulatory fees on wireless broadcasting will help fund better FCC service provision. What are some of the problems in with this reasoning?; Our staff of economists has assured us that this is the best way to serve the public, the stern but smiling man in the business suit said. He continued, Since this fee does not change the marginal cost of the firms, it will not affect production decisions and therefore will have no effect on the industry. Julius Genachowski, Chairman of the FCC, explains how the new yearly regulatory fees on wireless broadcasting will help fund better FCC service provision. What are some of the problems in with this reasoning?
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