Exam 13: Antitrust and Regulation

Government regulation of monopoly

Economies of scale create __________ for existing firms, which in turn creates__________ for potential entrants.

The consensus among economists who consider monopoly and oligopoly to be both inevitable and undesirable is, when confronted with a monopolized industry, to

The process of deregulating the airlines was initiated in the late 1970s by

The primary rationale for antitrust policy is mistrust and an expectation of foul play.

Governments often choose to regulate monopolies, rather than break them up into smaller firms, because monopolies often are

The primary manner in which the FTC settles an antitrust complaint is through

If a regulatory agency forces a natural monopolist to stop charging monopoly prices and start charging competitive prices,

Many economists believe that in our modern economy, firm size is most directly determined by

The advantages that arise from economies of scale make entry difficult for new firms. As a result, monopolies and oligopolies are often associated with __________ and___________.

Those economists who do not believe there is anything inherently wrong with monopolies advocate a policy of

The Interstate Commerce Commission regulated the trucking industry for many years in order to

A hands-off policy of the government is termed

According to the text, the U.S. economy's four competing power blocs include all the following except

A regulated firm is _________, but has no __________.

Which of the following was not addressed by the Clayton Act?

Perfectly competitive markets do not exist in the real world.