Which of the following statements is not correct?
a. The government may use antitrust laws to prevent a merger if the government believes the merger will reduce competition and increase prices.
b. By regulating a natural monopoly where price equals average total cost, the monopoly earns zero profits.
c. An advantage of private ownership over public ownership is that private business owners tend to fire inefficient managers.
d. The government should always intervene to improve monopoly inefficiency.
d
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An increase in the price a firm receives for its output will lead the firm to:
A. leave output unchanged and earn greater profits. B. reduce output. C. expand output. D. leave output unchanged and earn smaller losses.
Why might it be inefficient for the labor market not to have some form of unemployment compensation?
What will be an ideal response?
Every society faces trade-offs. Explain the concept of trade-offs
What will be an ideal response?
If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss solely due to the tax is
A) $88. B) $152. C) $361. D) $441.