Which of the following statements is true?
a. Antitrust policies are government policies designed to reduce the profitability of a monopoly and push production closer to the social optimum.
b. Antitrust laws can promote greater competition.
c. Average cost pricing sets price equal to marginal cost, where the demand curve intersects the marginal cost curve.
d. Both antitrust policies are government policies designed to reduce the profitability of a monopoly and push production closer to the social optimum and antitrust laws can promote greater competition are true.
Ans: d. Both antitrust policies are government policies designed to reduce the profitability of a monopoly and push production closer to the social optimum and antitrust laws can promote greater competition are true.
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Refer to Figure 17-1. If the wage rate is $40, how many workers should Dale hire?
A) 6 B) 5 C) 4 D) 3
The international unit of accounting used by the International Monetary Fund (IMF) is called
A) the Eurodollar. B) the IMF dollar. C) the quota subscription. D) special drawing rights.
When we add a personal income tax to the macroeconomic model, the
A. multiplier becomes larger. B. multiplier becomes smaller. C. expenditures schedule shifts upward. D. expenditures schedule becomes steeper.
Price elasticity looks at
A. The degree to which price changes with a change in the quantity demanded or supplied. B. The law of demand and the law of supply. C. Why the law of supply and the law of demand are untrue. D. How much the quantity demanded or supplied changes after a change in price.