The declared purpose of antitrust policy is to promote competition, yet some would say it actually may prevent competition. Explain the two sides of the debate
Antitrust, from the Sherman Act to the Hart-Scott-Rodino Act, penalizes monopolies for anticompetitive behavior. However, firms unable to compete sometimes use antitrust suits as a weapon. Firms that cannot succeed by holding down costs may accuse other firms of predatory pricing or price discrimination, when in fact the rival is simply behaving competitively.
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The interest payment on a bond is called
A) the coupon payment. B) the face value. C) principal. D) the interest rate.
A firm will not choose to produce if total variable costs exceed total revenue.
Answer the following statement true (T) or false (F)
For any competitive labor market, changes that decrease the number of workers will:
A. decrease the labor supply and shift the supply curve left. B. increase the labor supply and shift the supply curve right. C. decrease the labor supply and shift the supply curve right. D. increase the labor supply and shift the supply curve left.
What do most economists think is the most accurate statement about velocity?
a. It is fairly constant in the short run, but varies considerably in the long run, complicating predictions about nominal GDP. b. M1 velocity is more stable in the short run than M2 velocity, and it has been a superior tool in predicting changes in nominal GDP. c. It is not constant in the short run, and predictions about nominal GDP have not fared well. d. M2 velocity has been less stable than M1 velocity, but both are reliable enough to make accurate predictions about changes in nominal GDP.