Which of the following will NOT be true if the antitrust laws are successful?
A) Producers will earn zero economic profits in the long-run.
B) Firms will not restrict output.
C) Firms will produce the competitive output.
D) Firms will produce the quantity at which marginal cost equals marginal revenue and charge a price that is greater than marginal cost.
Answer: D
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Refer to Figure 18.4. With free trade, what is the equilibrium quantity of gloves in Duckland?
A) 100 B) 80 C) 60 D) 40
The Bureau of Labor Statistics collects ________ measures of unemployment.
A. 6 B. 5 C. 7 D. 4
When one country can produce a good more efficiently than another country:
A. both can specialize in the industry in which they have comparative advantage and experience mutual gains. B. that country can specialize in that good and choose only to export goods. C. that country should produce that good and be the sole "winner" of trade. D. that country has no basis for trading with another nation.
The critical issue of macro instability, when there is no government intervention and no foreign trade, is whether
A. Investment and consumption will exceed disposable income. B. Savings and taxes will be equal. C. spending injections will equal spending leakage at full employment. D. Consumption and savings lead to the ideal interest rate.