In the United States cartels are:
A. quite common in industries that produce nondurable goods.
B. in violation of the antitrust laws.
C. concentrated in monopolistically competitive industries.
D. encouraged by government policy so firms can achieve economies of scale.
Answer: B
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Which of the following regions tended to support federal construction of a system of roads in the 19th century?
a. the South b. New England c. Mid-Atlantic states, including New York and Pennsylvania d. the West e. All of the above.
Keynesian analysis stresses that a tax cut that increases the government's budget deficit or reduces its budget surplus:
a. is appropriate during a period of inflation. b. will increase the money supply. c. will stimulate aggregate supply and, thereby, promote employment. d. will stimulate aggregate demand and, thereby, promote employment.
Four automobile manufacturers—Jupiter, Apollo, Orion, and Galaxy—dominate their market. Which action poses the greatest threat to the longevity of the oligopoly?
a. Jupiter buys a chain of gasoline stations around the country. b. Apollo lobbies for lower tariffs on imported autos. c. Orion lowers its average total cost by securing a new supplier. d. Galaxy obtains a patent for a new braking system.
We know with certainty that a tax increase must cause which of the following?
A) an increase in investment B) a reduction in investment C) no change in investment D) none of the above