Considering the In the News article "Microsoft Guilty of Monopoly Abuse" antitrust laws attempt to
A. Protect producers from too much competition.
B. Protect the government from frivolous lawsuits.
C. Increase the profitability of monopolies.
D. Prevent the abuse of market power.
Answer: D
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The average benefit of n units of an activity is the:
A. extra benefit from carrying out one additional unit of the activity. B. n divided by the total benefit of n units. C. n times the total benefit of n units. D. total benefit of n units divided by n.
The outputs of an oligopolistic industry
A) can be homogeneous or differentiated. B) must cost above $100 on the market. C) always have excise taxes imposed on them. D) have no substitutes on the market.
How does monopoly product quality compare to the quality a social planner would choose? a. The monopolist targets the marginal consumer's valuation of quality, whereas the social planner targets the average consumer's. This leads the monopolist to make inefficiently low-quality products. b. The monopolist targets the marginal consumer's valuation of quality, whereas the social planner targets
the average consumer's. This leads the monopolist to make inefficiently high-quality products. c. There is no difference due to a standard neutrality argument. d. None of the above.
President Nixon imposed wage and price controls in the early 1970s to curb inflation. Critics argued that the Nixon-imposed controls
a. did not alter the behavior of workers or businesses and therefore could have no long-run effect on curbing inflation b. worked not only to reduce future expectations of inflation but also economic growth c. while significantly changing long-run inflation rates, led to unacceptable rates of deflation d. was accompanied by large government expenditures e. helped to further heighten market pressures that already existed