In 1998 the US Justice Department and 20 state attorneys general filed a suit against Microsoft alleging that Microsoft tried to protect its operating system monopoly and extend that monopoly into internet software. This is an example of
a. predatory pricing
b. antitrust enforcement
c. economic regulation
d. social regulation
e. the regulatory dilemma
QUESTION 2An increasing cost industry is one in which per unit cost increases as output expands in the long run
a. True
b. False
QUESTION 3Which of the following is most likely produced in a monopolistically competitive market?
a. restaurant meals
b. computer chips
c. firewood
d. motorcycles
e. soft drink
QUESTION 4Because of the rise of global competition and free trade,
a. antitrust policy serves no purpose
b. antitrust policy may be less necessary than previously thought
c. U.S. industrial concentration poses more of a threat to consumers
d. U.S. markets are becoming less contestable
e. U.S. manufacturers are seeking fewer trade barriers
QUESTION 5Allocative efficiency occurs when
a. output is produced at minimum average cost
b. the marginal benefit, that consumers attach to the final unit purchased, just equals the opportunity cost of the resources employed to produce that unit.
c. new firms enter a perfectly competitive market
d. the marginal benefit consumers attach to products purchased is maximized
e. goods and services are sold in an English style auction market
QUESTION 6Which of the following is most likely produced in a monopolistically competitive market?
a. soybeans
b. autos
c. fast food
d. oil
e. local phone service
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