Exam 13: Antitrust and Regulation

If the courts apply the per se criterion to a firm that dominates a market but does not engage in anticompetitive behavior, it would not find the firm to be in violation of the antitrust laws.

Enforcement of antitrust laws is the responsibility of

Which of the following would be a laissez-faire approach for the government to follow?

The main problem with a regulatory commission setting P = ATC is that the regulated firm will

Some economists see monopolies as inevitable, but not necessarily bad. They recommend a policy of

The term laissez-faire has the same meaning as which Beatles song?

If monopolies are both inevitable and bad, which policy alternative will be least disruptive of all effective policy alternatives?

Monopoly firms in contestable markets view the major threat to an exploitation of monopoly power to be

The text refers to the Green Bay Packers as an example of a nonprofit corporation that is no less efficient than a profit-maximizing NFL team.

A simple solution to the problem of monopolies is for the government to regulate price.

If the government owns a nationalized firm, the prices are

a.What is the theory of creative destruction? b. According to this theory, do we need to worry about the fact that our local power utility has a monopoly in the provision of electricity?

A law that encourages market competition by prohibiting firms from gaining or exercising excessive market power is

Antitrust issues can be political firestorms. In order to accomplish their economic missions regarding monopolies, regulation, and antitrust policy without incurring the scrutiny of the press and public, many presidents choose to

A fair price for a regulated monopoly is for the regulatory commission to set price equal to

Antitrust enforcement is primarily limited by the

Creative destruction theory is essentially an argument that profit potential within a noncompetitive industry creates an incentive for new types of competing industry, thereby strengthening the original industry's market power.

If left alone, a natural monopoly will

When the court requires evidence that a monopoly actually used its size to violate antitrust laws, this criterion is called

Historically, one problem found in most regulatory commissions is