Exam 27: Regulation and Antitrust Policy in a Globalized Economy

An automobile manufacturer voluntarily recalls certain models to fix a defective part at no cost to the owners. This action has the effect of

For a firm to be economically efficient from society's point of view, it should produce to the point at which

Cost-of-service-regulation sets prices by considering

Suppose technical change permits cable television companies to provide their services at lower rates. The share-the-gains, share-the-pains theory would predict that the regulators would

The potential for asymmetric information to bring about a general decline in product quality in an industry is known as the ________ problem.

The possession of monopoly power and the willful acquisition of that power is

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

Which antitrust law is sometimes called the "Chain Store Act"?

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

When a regulator allows a monopolist to set its price equal to long-run average cost, the regulator is practicing

Without any regulation, the natural monopolist will

-Refer to the above figure. An unregulated natural monopolist would choose

Under the U.S. system of regulation, most regulars are selected from

All of the following are forms of social regulation EXCEPT

The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads. As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they get additional business. The ICC would be acting consistently with

Government policy that attempts to prevent collusion among the sellers of a product and attempts to prevent restraint of trade is known as

The agency that deals with issues of "unfair and deceptive acts or practices in commerce" is the

The purpose of social regulation is

Section 1 of the Sherman Antitrust Act makes it illegal to

-In the above figure, if this natural monopolist were unregulated, the profit maximizing firm would produce