Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 13, Problem 12SQ
To determine
The cause of the establishment of ICC.
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Why does the us not outlaw all monopolies?
To regulate natural monopolies, the governments can choose amongst the following options:
Select all that apply
□ A. Set the price to equal Marginal Cost
B. Set the price to equal total cost
C. Set the price to equal Average total cost
□ D. Break the monopolies into several smaller companies
The establishment of the Interstate Commerce Act and the Sherman Anti-trust Act showed that the government could pass laws to regulate the _____
Chapter 13 Solutions
Micro Economics For Today
Ch. 13.2 - Prob. 1YTECh. 13.6 - Prob. 1.1YTECh. 13.6 - Prob. 1.2YTECh. 13 - Prob. 1SQPCh. 13 - Prob. 2SQPCh. 13 - Prob. 3SQPCh. 13 - Prob. 4SQPCh. 13 - Prob. 5SQPCh. 13 - Prob. 6SQPCh. 13 - Prob. 7SQP
Ch. 13 - Prob. 8SQPCh. 13 - Prob. 9SQPCh. 13 - Prob. 10SQPCh. 13 - Prob. 11SQPCh. 13 - Prob. 12SQPCh. 13 - Prob. 1SQCh. 13 - Prob. 2SQCh. 13 - Prob. 3SQCh. 13 - Prob. 4SQCh. 13 - Prob. 5SQCh. 13 - Prob. 6SQCh. 13 - Prob. 7SQCh. 13 - Prob. 8SQCh. 13 - Prob. 9SQCh. 13 - Prob. 10SQCh. 13 - Prob. 11SQCh. 13 - Prob. 12SQCh. 13 - Prob. 13SQCh. 13 - Prob. 14SQCh. 13 - Prob. 15SQCh. 13 - Prob. 16SQCh. 13 - Prob. 17SQCh. 13 - Prob. 18SQCh. 13 - Prob. 19SQCh. 13 - Prob. 20SQ
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- Antitrust laws are designed to…. A. Encourage monopolies B. Ensure the safety of food and beverages that people consume C. Allow for monopoly to gain complete control of a market D. Regulate monopoliesarrow_forwardWhy and how do governments regulate natural monopolies? Examine the strengths and weaknesses of different types of regulation. In the light of your analysis what recommendations would you make for government policy?arrow_forwardAntitrust laws are designed to maintain a competitive market environment by a. eliminating monopolies wherever they exist b. preventing monopolies from generating negative externalities c. limiting practices that increase a firm’s market power d. imposing price ceilings on products produced by monopolies e. making charging a price above marginal cost illegalarrow_forward
- In contrast to the Sherman Act, the Clayton Act of 1914 a. was more general, outlawing monopoly or attempting to acquire a monopolyb. identified specific practices that were illegalc. made interlocking directorates legal as long as they were reasonabled. invalidated the concept of "illegal per se"e. made cartels legal English Common law became the basis for American Common Law. What does the Common Law say about damages for parties injured by restraint of trade? a. They are not permittedb. Damages can be awarded in full to injured partiesc. Triple damages are awarded to injured partiesd. Only a fraction of damages will be awarded due to statutory restrictionse. The government could sue for damages on behalf of injured parties, and then give them damages net of taxes Some capital equipment such as a moving assembly line only comes in one size. This usually tends to create a. a significant diseconomy of scale at the plant level b. a significant diseconomy of scale at the firm level c.…arrow_forwardGovernment intervention can focus on the structure or behavior of a market. Antitrust focuses: Select one: a. Mostly on structure, while regulation focuses on behavior b. Mostly on behavior, while regulation focuses on both c. On both, while regulation focuses mostly on the level of competition within an industry d. On both, while regulation focuses mostly on structurearrow_forwardMatch each of the terms to their description: Shutdown Point A. something that keeps new firms from joining a market B. legal protection for inventions C. legal protection for books and music D. a firm that operates as a monopolist Price maker Barriers to Entry Copyright E. revenues do not cover its average variable costs Patentarrow_forward
- Vertical relationships can increase profits through a. preventing firms from evading regulation b. eliminating a double-markup problem c. making the incentives of manufacturers and retailers unaligned d. preventing price discriminationarrow_forward1. Choose one of the following industries you will discuss: (i)Water, (ii)Electricity, (iii)Cable/Internet Service 2. Identify the largest supplier (company) in the city where you live. 3. Assume that this company is the only one providing service in your area. What are at least two indicators that this company has monopoly power?arrow_forwardIn relation to mobile phone networks predatory roaming 1. Why is the roaming market in EEA ripe for collusion? 2. What is the nature of the barriers to entry in the market? 3. Why it is easy for the operators to exploit consumers? 4. If the commission does not take action, do you think it is likely that rates will fall much in the future?arrow_forward
- Antitrust policy is designed to a. encourage businesses to produce public goods b. establish trust between the government and the business community c. prevent businesses from earning profits d. maintain a competitive business environment e. ensure that businesses earn only zero economic profits in the long runarrow_forwardhow monopolists in the Philippines are being regulated by the government.arrow_forwardSome countries’ competition and antitrust policies are pro-competition and pro-consumer, whereas other countries’ policies are pro-incumbent and pro-producer. How do they differ?arrow_forward
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