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natural mon… Show more Question 1 If antitrust legislation

Paper help Economics natural mon… Show more Question 1 If antitrust legislation

Economics

natural mon… Show more Question 1 If antitrust legislation

natural mon… Show more Question 1 If antitrust legislation is successful then Question 1 options: natural monopoly will be eliminated. the price of each item will equal its marginal social opportunity costs. most firms will be earning a positive economic profit. firms will produce the quantity where marginal cost equals marginal revenue. Question 2 The United States as a whole would be inappropriate as the relevant geographic market when an antitrust case involved Question 2 options: two concrete producers. two auto producers. two steel producers. ABC and NBC. Question 3 The regulation of the prices charged by insurance companies is known as Question 3 options: economic regulation. social regulation. the Federal Register. the market share test. Question 4 During the production process Ajax Corporation releases pollution into the air. Ajax Corporation operates in a monopolistic competitive industry. Which of the following statements addresses the pollution situation? Question 4 options: This is known as the lemons problem. This is an example of a market failure and is a reason for the government to regulate the industry. Ajax is taking advantage of asymmetric information. The quality of the product could be improved if the amount of pollution can be reduced. Question 5 “Unfair or deceptive acts or practices in commerce” were prohibited by the Question 5 options: Clayton Act. 1938 amendment to the Federal Trade Commission Act. Clayton Act as amended by the Robinson-Patman Act. Federal Trade Commission Act. Question 6 An unregulated natural monopolist will produce Question 6 options: at the quantity where average total costs are minimized. at the quantity where marginal cost equals marginal revenue. at the quantity where marginal cost equals the long run average cost curve. at the quantity where the long-run average cost curve intersects the demand curve. Question 7 Cab drivers operating from JFK Airport to the City of New York or from the Dallas Fort Worth Airport to Downtown Dallas must charge a specific fare. This is an example of Question 7 options: market sharing test. social regulation. economic regulation. none of the above Question 8 When regulating a natural monopoly average cost pricing is usually used rather than marginal cost pricing because Question 8 options: average cost pricing leads to lower profits than marginal cost pricing. average cost pricing allows the firm to earn a normal rate of return on investment while marginal cost pricing leads to economic losses. average cost pricing leads to a lower market price than marginal cost pricing. average cost pricing is more economically efficient than marginal cost pricing. Question 9 The purpose of economic regulation is Question 9 options: to force a firm to produce at the point where marginal cost equals marginal revenue. to control the price that regulated enterprises are allowed to charge. to control the quality of service provided by a monopolist. to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods. Question 10 Suppose technical change makes it cheaper for cable television suppliers to supply their service. The capture theory would predict that the regulators would Question 10 options: force the firms to pass the savings on to consumers in the form of better service. force the firms to pass some of the savings on to consumers and permit them to keep some of the savings for themselves. force the firms to pass the savings on to consumers in the form of lower prices. allow the firms to capture the savings and would lower price only if the firms asked them to. • Show less

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