Antitrust cases that are brought to the courts by the Justice Department typically rely on perfect competition as a benchmark for lawyers to determine whether a firm is competitive or monopolistic
Why is this a troublesome criterion to use in prosecuting such cases?
It is troublesome because there are no instances of pure competition in the real world. Therefore regulators are using a benchmark that lacks realism.
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Producer surplus is equal to
A) the area under the supply curve. B) the difference between price and average cost for all units sold. C) the difference between price and marginal cost for all units sold. D) the firm's profit when fixed costs exist.
If the gadget industry is a constant cost industry, one would expect that the long run result of an increase in demand for gadget to include ____ firms and a(n) ____ in price. a. more; increase
b. more; no change. c. more; decrease. d. fewer; increase.
The benefits received principle means those with the least ability to pay should be the ones to receive the benefits
a. True b. False Indicate whether the statement is true or false
Of all the cars made in the United States, General Motors makes only ______ percent of them.
Fill in the blank(s) with the appropriate word(s).