If the courts apply the per se criterion to a firm that dominates a market but does not engage in anticompetitive behavior, it would not find the firm to be in violation of the antitrust laws
Indicate whether the statement is true or false
F
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Taxes may cause deadweight losses because __________.
A) they increase consumer surplus at the expense of producer surplus. B) they transfer purchasing power from buyers to the government. C) they transfer purchasing power from sellers to the government. D) they lower the surplus in the market.
In third-degree price discrimination, markets with a smaller price elasticity of demand are ________ responsive to price changes and are charged ________ prices than markets with a larger price elasticity of demand.
A) less; lower B) more; lower C) less; higher D) more; higher
A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $3. If the firm is perfectly competitive and the market price of its product is $9, which of the following is true?
A) The firm is producing the profit-maximizing total output. B) The firm should exactly triple output in each of the plants to maximize profit. C) The firm should increase output at each of the plants to maximize profit. D) The firm should decrease output at each of the plants to maximize profit.
Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?
a. Firms rely more on computer databases than on paper filing systems so there is an increased demand for high-skilled computer programmers. b. Consumers can accomplish many simple banking tasks on an automated teller machine (ATM) rather than speaking to a bank teller so there is a decreased demand for low- skilled bank tellers. c. Transponders in peoples' vehicles can be used to automatically deduct tolls from debit accounts, reducing the need for low-skilled toll collectors. d. Improvements in technology have made tax preparation software easy for an average citizen to use, reducing the need for high-skilled accountants.