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wildcat290 wildcat290
wrote...
Posts: 361
A week ago

Question 1.

What is the difference between a monopoly's marginal revenue curve and a perfect competitor's marginal revenue curve?



Question 2.

Why are laws aimed at regulating monopolies called "antitrust" laws?



"Trust" was a word in Old English that meant monopoly in the Middle Ages. Therefore, "antitrust" is a term that means "against monopoly."



The rise of large firms (e.g., Standard Oil) in the late 1800s in the United States caused consumers to lose trust in private business.



In the late 1800s, firms in several industries formed trusts; the firms were independent but gave voting control to a board of trustees. Antitrust laws were passed to regulate these trusts.



In the late 1800s, firms in several industries formed trusts; they were called "trusts" because when corporate officials were questioned about their business they would clam that business was good for the country and that they should trusted.

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Answer verified by a subject expert
sadeensadeen
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Posts: 317
A week ago
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Answer 1

A monopoly's marginal revenue curve lies entirely below its market demand curve and is downward sloping, but a perfect competitor's marginal revenue curve is the same as its demand curve which is horizontal at the prevailing market price.



Answer 2

In the late 1800s, firms in several industries formed trusts; the firms were independent but gave voting control to a board of trustees. Antitrust laws were passed to regulate these trusts.

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