The goal of antitrust laws is to
A. Prevent monopolies from forming.
B. Control the structure of an industry or prevent the abuse of market power.
C. Alter industry behavior only.
D. Control the structure of an industry only.
Answer: B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Which of the following is a significant barrier to reducing the damage people do to one another's environment?
A) Low negotiation costs among people B) Property rights clearly assigned to specific persons C) Scarcity of public or common property relative to private property D) All of them. E) None of them.
The "rule of reason" was formulated in the
A. Standard Oil case of 1911. B. U.S. Steel case of 1920. C. ALCOA case of 1945. D. XEROX case of 1973
The fact that the production function relating output to labor becomes flatter as we move from left to right means that
A. there is diminishing marginal productivity of capital. B. the marginal product of capital is positive. C. there is diminishing marginal productivity of labor. D. the marginal product of labor is positive.