Which of the following statements about the Sherman Act is CORRECT?
A) The Sherman Act was the second federal antitrust law.
B) The Sherman act legalized monopolization if the company behaved "reasonably" once it became a monopoly.
C) The Sherman Act outlawed natural monopolies.
D) The Sherman Act made restriction of interstate trade illegal.
D
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An increase in supply could be caused by a(n)
a. increase in price b. government-imposed price ceiling c. decrease in resource prices d. decrease in consumer incomes e. unfavorable shift in tastes and preferences
Assume that the MPC is 0.80 and investment rises by $50 million. How much additional saving will this generate in the second round of spending?
a. $10 million b. $40 million c. $50 million d. $62.5 million e. $250 million
High monopoly profits are possible if each of the oligopolists in a market: a. cooperates by reducing its output
b. cooperates by reducing its price. c. pursues self-interest by increasing its output. d. pursues self-interest by decreasing its output.
Price ceilings and price floors:
A. make the rationing function of markets more efficient. B. interfere with the allocation function of prices. C. cause surpluses and shortages in markets respectively. D. cause demand and supply curves to shift thus having no effect on the rationing function of prices.