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Title: The actual deadweight loss from monopoly in the U.S. may be greater than calculated estimates ... Post by: johnnybagggs on Feb 27, 2018 The actual deadweight loss from monopoly in the U.S. may be greater than calculated estimates because some
a. monopolies experience strong economies of scale b. monopolists spend resources to secure and maintain their monopoly c. monopolists may purposely keep price lower than its profit-maximizing level, in order to increase barriers to entry d. monopolists' markets are contestable e. monopolists' prices and profits are regulated by the government QUESTION 2 Under the rule of reason, no firm with a large market share could be found guilty of violating the Sherman Antitrust Act. a. True b. False QUESTION 3 Which of the following is true for a perfectly competitive firm in the long run? a. MR = MC = ATC b. MR = MC = AFC c. MC = ATC = AFC d. MR = MC > ATC e. MR = MC > AVC QUESTION 4 All else equal, when a monopolist increases its price, revenue will fall because of the lost sales. a. True b. False QUESTION 5 When a court uses the per se rule to interpret the Sherman Antitrust Act, its ruling is based on market conduct alone. a. True b. False QUESTION 6 In long-run equilibrium, a. perfectly competitive firms in a decreasing-cost industry can earn economic profits b. perfectly competitive firms in an increasing-cost industry can earn economic profits c. perfectly competitive firms in a constant-cost industry can earn economic profits d. perfectly competitive firms can earn only normal profits e. no entry occurs in an increasing-cost perfectly competitive industry Title: The actual deadweight loss from monopoly in the U.S. may be greater than calculated estimates ... Post by: Candy71444 on Feb 27, 2018 |