Discuss three types of antitrust policy.
What will be an ideal response?
The three types of antitrust policy used by the government are 1) breaking up monopolies; 2) blocking mergers; and 3) regulating business practices. The government breaks up monopolies to increase competition and increase efficiency. Increased competition leads to lower prices. Mergers can also lead to lower competition and high prices. Sometimes it makes sense to allow the existence of a monopoly or allow a merger because the cost savings from the economies of scale justify it. In these cases, the government can regulate the firms to achieve a more efficient economic state.
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The figure above shows the price of a DVD player from 2003 to 2007
a) What type of graph is illustrated above? b) What is the trend in the price of a DVD player?
Using the above figure, which of the following quantities of CDs has the largest deadweight loss?
A) 3 million CDs B) 4 million CDs C) 7 million CDs D) The deadweight losses associated with the three quantities given above are all equal.
If using the same resources, the U.S. workers can produce more of any good than Mexican workers, then the United States should produce every good
a. True b. False Indicate whether the statement is true or false
When GDP and other national income accounts are measured in nominal values, then they
A. are not comparable because they are not in real terms. B. should be converted into money values before comparing them over time. C. are measured in real values. D. are measured in current market prices.