Exam 27: Regulation and Antitrust Policy in a Globalized Economy

Using the figure as a guide, which of the following is FALSE with respect to profit maximization and the monopolist?

Suppose a dangerous workplace is made safer through the installation of guards and other equipment that reduce the physical hazards of the work environment. If we observe no reduction in injuries, we might conclude that

The Federal Trade Commission (FTC)is a regulatory agency that is responsible for preventing firms from engaging in misleading advertising. This type of regulation is known as

The two most important rationales for government intervention in non-monopolistic markets are

Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the capture theory, we would expect

All of the following are forms of social regulation EXCEPT

One problem that might occur as a result of economic regulation is

In a court decision in June 2001, the Federal District Count of Appeals in Washington, D.C. found that Microsoft had violated the

Regulators usually encourage natural monopolists to engage in

If antitrust legislation is successful, then the monopolistic firm will

A firm that has taken advantage of economies of scale and expanded to become the only producer in the market is

What are the major rationales for consumer protection in nonmonopolistic industries?

The U.S. antitrust enforcers will likely block a merger if

The primary antitrust statute in the United States is the

All of the following are exempted from antitrust laws EXCEPT

The hypothesis that regulators eventually adopt policies that benefit the producers in the industry is known as the

Which of the following is the outcome of the lemons problem in the used-car market?

The feedback effect can be thought of as a type of

An unregulated natural monopolist will produce the quantity at which

There are many exemptions from antitrust laws. Which of the following is NOT one of them?