To protect the competitive economic system by restricting the formation of monopolies, the government has passed and enforced
A) regulatory laws.
B) antitrust laws.
C) tort laws.
D) zoning laws.
B
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A monopolist can perfectly price discriminate:
A. when it can distinguish consumers with a high versus low willingness to pay. B. when it offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay. C. if it knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit. D. whenever it chooses to as a result of its market power.
An absence of property rights often leads to market failure. When this is the case, how does society usually solve the problem?
Label the maximum profit output in the above graph.
If two goods are substitutes, then
A) an increase in the price of one causes the demand for the other to fall. B) there is an inverse relationship between changes in the price of one good and changes in the demand for the other. C) if the price of one good falls, the demand for the other good falls also. D) changes in the quantity demanded of one good will not affect the demand for the other.