Which of the following statements is most correct?
A. Financial regulators work to prevent monopolies but also work to prevent strong competition in banking.
B. Financial regulators discourage competition in banking.
C. Financial regulators do everything possible to encourage competition in banking.
D. Financial regulators prefer banks to have monopoly power in their geographic markets.
Answer: A
You might also like to view...
In which market structure do firms exist in very large numbers, each firm produces an identical product, and there is freedom of entry and exit?
A) monopoly B) oligopoly C) only perfect competition D) only monopolistic competition E) both perfect competition and monopolistic competition
When the demand for blue jeans increases, what happens next?
What will be an ideal response?
The total demand for a public good is found by
A) horizontally summing all individual demands. B) vertically summing all individual demands. C) finding the demand from the median voter. D) dividing the marginal cost of the good by the number of voters.
Without any regulation, the natural monopolist will
A) not produce any output. B) produce to the point at which P = ATC. C) produce less output than it would if the industry was purely competitive. D) have an upward-shifting average cost curve.