The U.S. government
a. intervenes to prevent the monopolization of any market.
b. forbids the creation of legal impediments to entry into any market.
c. intervenes to prevent the monopolization of some markets and actively encourages the monopolization of others.
d. encourages the permanent monopolization of all markets in which the monopolist has technical superiority over potential competitors.
c
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A ________ is a plan by one firm to price a good at marginal cost forever if the other cheats on an agreement
A) pure strategy B) grim strategy C) patent D) collusion
Briefly explain why often two firms could both be made better off by cooperating, but they fail to cooperate.
What will be an ideal response?
If the firm in Figure 23.4 raised the price of its product above $4, the firm would
A. Increase its profits. B. Reduce its total revenue to zero. C. Not affect revenues but increase profits because costs would decrease. D. Increase its total revenue but not its profits because costs would increase.
Refer to Figure 12-16. Which panel best represents the perfectly competitive organic produce market in which firms are breaking even, economically, organic produce is considered a normal good, and the average income level of consumers is rising?
A) Panel A B) Panel B C) Panel C D) Panel D