Despite the Postal Service's legal monopoly over first-class mail delivery,
a. the price of a first-class stamp has not changed for over a decade
b. the price of a first-class stamp has fallen as delivery volume increased
c. it still produces along the inelastic range of the market demand curve
d. its faces competition from foreign suppliers
e. it has lost huge chunks of other mail classes to private firms
QUESTION 2U.S. antitrust policy is focused primarily on market conduct.
a. True
b. False
QUESTION 3All of the following are true of a perfectly competitive firm in long-run equilibrium except one. Which is the exception?
a. Its economic profit will be zero.
b. Its accounting profit may be positive.
c. It will be minimizing average total cost.
d. It will be charging a price equal to marginal cost.
e. Marginal cost is minimized.
QUESTION 4The U.S. Postal Service has a monopoly over first-class mail delivery
a. because of economies of scale
b. because of its control of essential resources
c. because of its control over key patents
d. because of government-imposed barriers to entry
e. despite its very low fixed costs
QUESTION 5Which of the following U.S. antitrust laws prohibits mergers through the acquisition of a firm's stock if the merger would lessen competition?
a. the Sherman Antitrust Act
b. the Clayton Act
c. the Robinson-Patman Act
d. the Celler-Kefauver Anti-Merger Act
e. the Federal Trade Commission Act
QUESTION 6In the long run in perfect competition, no firm can earn a normal profit.
a. True
b. False
QUESTION 7Rent-seeking activities are socially wasteful because they use scarce resources but do not add to society's output.
a. True
b. False
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