Exam 27: Regulation and Antitrust Policy in a Globalized Economy

The following table depicts the cost and demand structure a natural monopoly faces. Provided that the firm operates as a monopolist, what is the price charged and quantity produced in order to maximize profits?

U.S. government regulation of social and economic activity

-Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?

-Refer to the above figure. An unregulated natural monopolist's profits will be

Which of the following is NOT an antitrust law?

Suppose that in an industry, firm X has 50 percent market share, firm Y has 35 percent market share, and firm Z has 10 percent market share. Which of the following mergers is NOT likely to be challenged by the Federal Trade Commission?

All of the following are possible criticisms of social regulation EXCEPT

In some cases, social regulation may alter individuals' behavior. For example, there is evidence to indicate that as more automobile safety regulations have been introduced, more individuals have begun to drive recklessly. This phenomenon is known as

The feedback effect can be thought of as a type of

"Unfair or deceptive acts or practices in commerce" were prohibited by the

-Refer to the above figure. From the standpoint of society, the optimal price is

Regulators employ average cost pricing instead of marginal cost pricing because

Regulators often adopt policies that benefit

The U.S. antitrust enforcers determine whether a merger violates antitrust laws by examining

A natural monopoly exists when

-In the above figure, if the monopolist engages in marginal cost pricing, what are its output and price?

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 produce

Which of the following are exempt from the antitrust laws?

Which of the following refers to the capture hypothesis of regulation?