How might a court use cross elasticity in an antitrust case?
What will be an ideal response?
One major issue a court must settle is the boundary of a market. Legal language is addressed to particular lines of commerce in parts of the country. This requires the definition of the relevant market in product and geographical terms. The opening quotation from the DuPont Cellophane case shows the importance of the computation.
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All else equal, an increase in population decreases potential GDP
Indicate whether the statement is true or false
The federal government relies most heavily on which source of revenue?
a. individual income taxes b. corporate income taxes c. social insurance payroll taxes d. excise taxes
Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Dirty Inc. ($/day)$100$200$380$740$1,460Cost to Filthy Inc. ($/day)$400$430$490$580$700 Suppose pollution is initially unregulated. If the City Council imposes a tax of $91 per day on each ton of smoke emitted, then total emissions will fall to ________ tons of smoke per day.
A. 1 B. 4 C. 2 D. 8
Answer the following questions true (T) or false (F)
1. "The distribution of income should be left to the market" is an example of a positive economic statement. 2. Positive analysis is concerned with "what ought to be," while normative analysis is concerned with "what is." 3. "A decrease in the price of tablet computers will decrease the demand for desktop computers." This statement is an example of a normative economic statement.