Which of the following is not a legal barrier to entry in a monopolized market?
a. A patent.
b. An exclusive franchise.
c. Decreasing average cost.
d. An exclusive license.
c
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The most important weakness of the Sherman Antitrust Act was that:
a. the Supreme Court refused to enforce it. b. it wasn't specific about the types of acts which would violate the law. c. it didn't outlaw restraints of trade. d. it was too complicated. e. it was too specific.
When demand is elastic, an increase in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.
Which of the following was not an industry the government has used the Sherman Act to break up because it was a monopoly?
A. Aluminum B. Oil C. Railroad D. Technology
Consider again the Solow growth model and the following production function: a). If A = 2, L = 20,000, and K = 400, what is output? b). Suppose the labor force grows by 5% so that it is now 21,000. By how much does output increase? c). Starting again with the conditions in part a, what is capital increases by 5%, so that it is now 420. By how much does output increase?