Exam 27: Regulation and Antitrust Policy in a Globalized Economy

Commonwealth Edison is the only provider of electricity to many households in the Chicago area. Commonwealth Edison is regulated by the government. This type of regulation is known as

Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. Which of the following statements is true?

The Federal Trade Commission Act, as amended, prohibits

Acme Inc. found a tricky way to conform to the letter of the law with respect to new EPA regulations, even though they violated the spirit of the law. This is called

The Federal Trade Commission Act was designed to

It is illegal to price discriminate except in cases in which the price differences are due to actual cost differences. This situation is due to which antitrust act?

The "Chain Store Act" is a name given to the

The Food and Drug Administration (FDA) is an agency that would enforce

In marginal cost pricing, the natural monopoly would have to set price equal to

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

Which of the following defines monopoly?

When companies sell slightly different forms of a product to different groups of customers, this is known as

Using a graph, show the price-output combination of a natural monopoly without regulation and the price-output combination if the government requires the monopoly to earn a normal rate of return. What are economic profits in each situation?

According to OSHA standards, the air in the building that John works in is unsafe. The type of regulation that OSHA engages in is known as

-In the above figure, if this natural monopolist were regulated and allowed to earn a "fair" rate of return, it would sell the product at the price ________.

The act of Congress which prohibited "unfair or deceptive acts or practices in commerce" is called

Natural monopolies

What is the relationship between the Sherman Antitrust Act and the Clayton Act?

Regulation of monopolies that allows prices to reflect only the actual cost of production and no monopoly profits is referred to as

The law passed by Congress in 1914 that was designed to sharpen or define further the vagueness of the Sherman Act is called