Briefly describe the historical background that gave rise to antitrust and regulation in the United States
What will be an ideal response?
The history of antitrust and regulation essentially began in the decades following the Civil War. It was in this period that the modern form of corporate business began to develop and “trusts” or monopolies were formed in industries such as petroleum, meatpacking, railroads, sugar, lead, coal, whiskey, and tobacco. Questionable tactics and business practices were used by some of these trusts to monopolize industries and extract price concessions from resource suppliers. Farmers and small business were vulnerable to the pricing power of the large trusts. The opinions of consumers, labor unions, and economists also turned against the economic power of the trusts and large businesses that dominated an industry.
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Unlimited liability exists when
A) the profits of the firm are taxed once. B) a firm dissolves when the owner dies. C) a corporation exists. D) the personal assets of the owner of a firm can be seized to pay off the firm's debts.
In a monopolistically competitive market like retail trade, firms can easily enter and exit the market
a. True b. False Indicate whether the statement is true or false
Which of the following is true of the demand curve faced by a monopolistically competitive firm? a. The demand curve faced by a monopolistically competitive firm is kinked
b. The demand curve faced by a monopolistically competitive firm is downward-sloping. c. The demand curve faced by a monopolistically competitive firm is upward-sloping. d. The demand curve faced by a monopolistically competitive firm is horizontal.
Farmers cannot individually affect market price because
A. There is an infinite demand for their goods. B. Demand is perfectly inelastic for the farmer's produce. C. The government exercises control over the market power of competitive firms. D. Their individual production is insignificant relative to the production of the market.