Answer the following statements true (T) or false (F)
1. The cornerstone of antitrust policy in the United States is generally considered to be the Sherman Antitrust Act of 1890.
2. All price discrimination is deemed illegal in antitrust legislation.
3. Unfair advertising practices are investigated by the Federal Trade Commission.
4. The rule of reason in antitrust applications means that if a firm has a dominant share of the market, it stands to reason that it will exploit its monopoly power to gain an unfair advantage over its rivals.
5. "Behaviorists" in antitrust applications believe that a firm that dominates a market is not necessarily behaving unfairly.
1. T
2. F
3. T
4. F
5. T
You might also like to view...
The loss of profit to the chemical solvent manufacturer from changing its output from QC to QE is
Consider the following graph of the market for chemical solvents, production of which damages a waterbody used for recreation.
a. DGH b. DEH c. DEHG d. EH
Julia is a 28-year-old nonsmoking, non-drinking female of normal weight. Because of adverse selection in health insurance,
A) She will be charged less for her premiums than people who are higher risks. B) She is less likely to buy health insurance than the average person, because policy premiums are based on expected medical expenditures of people who are less healthy than she is. C) When she get health insurance, she will be less likely to take care of herself. D) She must get health insurance early in life, and is likely to lose health insurance if she smokes, drinks to excess, or gains weight. E) She is more likely than the average person to buy health insurance, because she is more likely to be offered it.
Over the long run, why do low-cost providers generally prevail?
What will be an ideal response?
Which of the following is true?
i. Production efficiency occurs only when resources are used to produce the combination of goods that has the greatest value. ii. Allocative efficiency occurs when marginal benefit equals marginal cost. iii. A demand curve is a marginal cost curve. A) only ii B) only i C) only iii D) i and ii E) ii and iii