The Department of Justice has challenged the merger of two firms, and the case has ended up in the Supreme Court. The two firms argue that they will not use their monopoly power to raise prices or to cut output. Under what judicial standard would their merger be allowed, and under what judicial standard would their merger be disallowed?
The merger would be allowed under the rule of reason, which says that as long as a firm behaves
reasonably, its size doesn't matter. The merger would be disallowed under the per se standard, which says
that having a monopoly position is undesirable, no matter how the firm behaves.
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Market income in the United States is distributed
A) more unequally than income after taxes and benefits. B) less unequally than income after taxes and benefits. C) the same as income after taxes and benefits. D) according to a big tradeoff between equity and equality
A decision made by a rational person
A) is intended to make the person worse off. B) would always make the person wealthier. C) is identical to a decision that would be made by any other person facing the same choices. D) is intended to make the person better off.
In an enforceable contract one or both parties could invest too little in relationship-specific assets that increase the economic value their joint efforts can create
Indicate whether the statement is true or false
If the level of unemployment is above the natural rate of unemployment, it would be expected that:
a. the short-run Phillips curve will shift leftward, as inflationary expectations adjust. b. the inflation rate will increase c. the short-run Phillips curve will shift rightward, as inflationary expectations adjust. d. both b. and c.