Why are laws aimed at regulating monopolies called "antitrust" laws?
A) The rise of large firms (e.g., Standard Oil) in the late 1800s in the United States caused consumers to lose trust in private business.
B) "Trust" was a word in Old English that meant monopoly in the Middle Ages. Therefore, "antitrust" is a term that means "against monopoly."
C) In the late 1800s, firms in several industries formed trusts; the firms were independent but gave voting control to a board of trustees. Antitrust laws were passed to regulate these trusts.
D) In the late 1800s, firms in several industries formed trusts; they were called "trusts" because when corporate officials were questioned about their business they would clam that business was good for the country and that they should trusted.
Answer: C
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A tax on labor income __________. The equilibrium quantity of labor __________.
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Refer to the information provided in Figure 3.12 below to answer the question(s) that follow.
Figure 3.12Refer to Figure 3.12. The supply curve for hula hoops shifts from S1 to S0. This could be caused by
A. a decrease in the number of firms selling hula hoops. B. a decrease in the cost of producing hula hoops. C. a decrease in the demand for hula hoops. D. a decrease in the price of hula hoops.
Refer to the above table. If the firm can sell 24 units of output at a price of $1.00 and 42 units of output at a price of $0.80, the marginal revenue product of the second unit of the resource is:
A. $5.40
B. $7.80
C. $9.60
D. $12.20