Which of the following will NOT be true if the antitrust laws are successful?
A. Firms will not restrict output.
B. Firms will produce the competitive output.
C. Firms will produce the quantity at which marginal cost equals marginal revenue and charge a price that is greater than marginal cost.
D. Producers will earn zero economic profits in the long-run.
Answer: C
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The U.S. trade deficit has been mainly caused by:
A. unfair trade restrictions imposed by other countries on imports. B. production of inferior goods in the U.S. C. cheap labor in other countries. D. a low rate of national saving.
When taxes are cut, aggregate demand ________ and aggregate supply ________
A) decreases; increases B) increases; increases C) increases; does not change D) increases; decreases E) decreases; decreases
A document describing how much profit or loss was earned by a business over a given length of time is called
a. a balance sheet b. an income statement c. a statement of cash flows d. a profit-and-loss statement
When import quotas are imposed by a government
A. the supply of the product on the domestic market increases. B. the domestic producers always lower the prices of their products to ensure that their products are sold. C. the government is trying to discourage consumers from buying foreign-made goods. D. the price ceiling for the product has to be lowered.