Regulatory agencies are perceived as congressional rather than executive agencies. True False   The Sherman Act was designed to ________________.   A. shift some of the benefits of the market place from producers to consumers by maintaining a competitive economy   B. prevent unfair methods od competition in commerce   C. downplay the seriousness of monopoly or monopoly power in the economy   D. relocate George & Louise Jefferson to the east side   Occupational regulation has been justified by economists in terms of public interest theory. True False

Why does the NRLA allow employees to strike and employers to perform lockouts? A. They put pressure on the other side to come to the bargaining table. B. They build media attention. C. Employees are protected by the freedom of speech, and employers are protected by private property laws. D. Strikes and lockouts stimulate new jobs in the economy. 1B. How was the Sherman Antitrust act used against unions? A. It considered a group of workers organizing into a union a combination designed to restrain trade. B. It set a maximum amount of workers to be allowed in any given union. C. It banned the use of unions in the manufacturing environment. D. It made it impossible for union activities to be held on the employer’s property.

As an apparent result of airline deregulation,   a. many small communities have been left without airline service.   b. air fares have risen more quickly than they probably would have under continued regulation.   c. small commuter airlines have almost vanished.   d. the wages and benefits of airline workers have been reduced.

4. A pharmaceutical firm is marketing a patented drug it has developed (the firm therefore has monopoly rights over the drug). The demand for the drug is given by Q = 8000 - 8P (MR(Q) = 1000 - = 8000 - 8P (MR(Q) = 1000 - ), where P is the price of the drug (in cents), and the total cost of production is TC(Q) = Q2+100Q+10000 (MC(Q) = 2Q + 100). a. Calculate the (monopoly) price of the drug, PM, and the quantity sold, QM b. Suppose now that the drug's patent expires, and other pharmaceutical firms can begin producing it. Assume this result in a competitive supply of the drug, and calculate the long-run competitive equilibrium price and aggregate quantity. Compare these to those you found in part a.