Which of the following practices is restricted by the antitrust laws of the United States?
a. Merger of smaller firms into a large firm
b. Entry of new firms in the long run
c. Standardization of products in a market
d. Exit of non-performing firms in the long run
e. Quality differentiation by competitive firms
a
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Since it is always a negative number, economists use the convention of taking the absolute value of
a. income elasticity of demand b. cross price elasticity of demand c. price elasticity of supply d. price elasticity of demand e. any elasticity calculation
The social cost of production, in cases where negative externalities exist, is equal to the
a. sum of private and external costs minus social benefit b. sum of private and external costs c. sum of private cost and external cost minus social benefit d. sum of private cost and external cost e. current market price plus the external cost
To be successful, a cartel must
a. find a way to encourage members to produce more than they would otherwise produce. b. agree on the total level of production for the cartel, but they need not agree on the amount produced by each member. c. agree on the total level of production and on the amount produced by each member. d. agree on the prices charged by each member, but they need not agree on amounts produced.
If the economy is in equilibrium, it must be
A. on the 45° line. B. on the 60° line. C. below the 45° line. D. below the 60° line.