December 2020

As shown in Exhibit 11, the perfect equality line isdrawn between points a. W and Y along the curve. b. X and Z. c. W and Y along the straight line. d. W and X.

Assume a regulatory agency is given authority overprices and entry conditions for a given industry. Also assume the agency decides to allow new entry, as the CAB actually did before deregulation, only when it is proven to be “necessary.” Would this condition be expected to favor (a) existing regulated firms, (b) new entrants, or (c)

Assume a natural monopolist is required to use marginal cost pricing and a government subsidy covers the loss. What problems might be associated with a public subsidy?

Do you agree that “cost does not really matter” as a principle for safety regulation, or do you believe that the cost of a safety device must be justified on the basis of the value of human life protected from a hazard?

The antitrust doctrine that the existence of monopoly alone is not illegal unless the monopoly engages in illegal business practices is called the ___________. T F The Robinson-Patman Act strengthened the merger provisions of the Clayton Act.

Suppose a firm offers quantity discounts or specialpromotional allowances only to favored distributors and the effect is to substantially lessen competition. This firm would be in violation of the a. Celler-Kefauver Act. b. Sherman Antitrust Act. c. Federal Trade Commission Act. d. Clayton Act. e. Robinson-Patman Act.

  Which antitrust act prohibits price fixing and other conspiracies and combinations that restrain trade and attempts to monopolize? a. Sherman Act of 1890 b. Clayton Act of 1914 c. Federal Trade Commission Act of 1914 d. Robinson-Patman Act of 1936 e. Celler-Kefauver Act of 1950 Q455: It is frequently said that people “vote with

Which of the following statements is true?a. A vertical merger is a merger of firms that compete in the same market. b. The rule of reason doctrine declares that the existence of monopoly alone is illegal. c. Government regulation of a natural monopoly is economically justifiable. d. Deficient information on unsafe products causes underconsumption. e.

Which of the following statements is true? a. A vertical merger is a merger of firms that compete in the same market. b. The rule of reason doctrine declares that the existence of monopoly alone is illegal. c. Government regulation of a natural monopoly is economically justifiable. d. Deficient information on unsafe products causes underconsumption.

A fabric shop cannot sell Singer sewing machines ifit also sells other brands of sewing machines. This is an example of a. resale price maintenance. b. territorial restrictions. c. a tying agreement. d. exclusive dealing.