What are the basic purposes of antitrust policy?
What will be an ideal response?
Antitrust policy has three basic objectives. First, it seeks to prevent monopolization of an industry in which one firm or a dominant firm controls an industry. Second, it strives to promote competition in markets so that there is no harmful manipulation of price and output by a firm. Third, it promotes economic efficiency in the economy.
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Keough plans and IRAs are
A) individual pension plans. B) government pension plans. C) corporate pension plans. D) public pension plans.
Suppose a perfectly competitive firm can produce 20,000 bushels of corn a year at an output at which marginal cost equals marginal revenue. The market price of corn per bushel is $1.00
The firm's total costs per year are $50,000 and fixed costs per year are $25,000. In the short run, this firm should A) shut down. B) continue producing until the price of corn increases. C) produce 20,000 bushels of corn because, although they are losing money, they are losing less than if they shut down. D) produce 40,000 bushels to try to increase economic profit.
In the context of consumer choice theory, utility means:
a. usefulness. b. satisfaction. c. practicality. d. boring. e. action.
Foreign residents can benefit from U.S. research and development activity because
A. they can import the goods, obtaining inputs at lower cost than they would otherwise. B. countries usually share patented ideas. C. they ignore U.S. patent laws and steal the technology. D. patents do a poor job of protecting the inventor.