A) has a high marginal cost. B) should be regulated by the government. C) faces no competition. D) is a declining average total cost industry. E) is unregulated. A) has a high marginal cost. B) should be regulated by the government. C) faces no competition. D) is a declining average total cost industry. E) is unregulated.

Exam 12: Antitrust Policy and Regulation

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A business practice is deemed illegal under the per se rule when the court decision is made without regard to the practice's economic rationale or consequences.

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(True/False)

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Question 1

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A natural monopoly can be regulated based on price, output, or profits.

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(True/False)

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Question 2

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What are the major advantage and the major disadvantage of a regulatory method that stipulates that a natural monopoly charge a price equal to marginal cost?

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When price is equal to marginal cost, the deadweight loss resulting from the existence of a natural monopoly is eliminated. However, marginal cost pricing means that the price would likely be less than average total cost, and the monopoly would suffer a loss. As a result, there would be no incentive for any firm to come into the market.

The 1914 law aimed at preventing monopolies from forming through mergers is called the

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Question 4

The combining of two firms that sell the same good or type of good is called a

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Question 5

Cable television

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Question 6

A vertical merger will seldom reduce competition if

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Question 7

Which of the following statements about the Sherman Antitrust Act is false?

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Question 8

It has been suggested that it is always worth regulating a monopoly if doing so reduces the amount of deadweight loss. Comment.

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Question 9

A possible explanation for government price controls is that they

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Question 10

The measure used by the U.S. government to determine whether a merger should be allowed is the

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Question 11

A broader definition of a market implies

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Question 12

In a natural monopoly,

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Question 13

A court decision forbidding resale price maintenance would mean that

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Question 14

Predatory pricing is being practiced when firms sell products to make large, short-run profits.

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Question 15

The table below shows the market shares of three industries. Use the FTC merger guidelines to determine whether the following changes in the industries would be permitted:

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Question 16

A massive wave of mergers and consolidations in the United States 100 years ago was made possible by

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Question 17

Soft drink distributors commonly use the practice of

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Question 18

Producers can make regulatory agencies their captives in order to reduce market competition.

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Question 19

In 1920, the U.S. government was successful in using the Sherman Antitrust Act against U.S. Steel.

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Question 20

Showing 1 - 20 of 152

Exam 12: Antitrust Policy and Regulation

A business practice is deemed illegal under the per se rule when the court decision is made without regard to the practice's economic rationale or consequences.

A natural monopoly can be regulated based on price, output, or profits.

What are the major advantage and the major disadvantage of a regulatory method that stipulates that a natural monopoly charge a price equal to marginal cost?

The 1914 law aimed at preventing monopolies from forming through mergers is called the

The combining of two firms that sell the same good or type of good is called a

Cable television

A vertical merger will seldom reduce competition if

Which of the following statements about the Sherman Antitrust Act is false?

It has been suggested that it is always worth regulating a monopoly if doing so reduces the amount of deadweight loss. Comment.

A possible explanation for government price controls is that they

The measure used by the U.S. government to determine whether a merger should be allowed is the

A broader definition of a market implies

In a natural monopoly,

A court decision forbidding resale price maintenance would mean that

Predatory pricing is being practiced when firms sell products to make large, short-run profits.

The table below shows the market shares of three industries. Use the FTC merger guidelines to determine whether the following changes in the industries would be permitted:

A massive wave of mergers and consolidations in the United States 100 years ago was made possible by

Soft drink distributors commonly use the practice of

Producers can make regulatory agencies their captives in order to reduce market competition.

In 1920, the U.S. government was successful in using the Sherman Antitrust Act against U.S. Steel.

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

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