🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
159
views
30 Oct 2020

In a market economy which showcases competitive behavior, firms are allowed to expand production, diversify, sell at any price they choose, do hiring or firing. Anti-trust allows for the same. Please state your comment

Booster class
Microeconomics
Skill
Explain the functioning of a Monopoly, Anti-competitive behaviour and regulations
Watch
1
answer
0
watching
159
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Paramjeet Chawla
Paramjeet ChawlaLv8
30 Oct 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Anti-trust authorities at the federal trade commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?

Based on what you have learned about monopoly markets and markets in oligopoly, which of these two do you believe is more harmful for the consumers and for the economy, and why?

Do you believe all monopolies should be considered illegal? (Please use your knowledge about the Sherman Anti-Trust Act, etc., to discuss the issue).

Many goods and services, such as homeland security, air traffic control, national highways construction, disaster relief, etc., are exclusively provided by the government. In that sense, they are government produced, government run monopolies.

If that is fair, then how can the government use antitrust laws to strike down private monopolies? Are all private monopolies necessarily evil, and should they never be allowed to exist?

Are government provided goods/services public goods? Please explain how or why, with the help of an example.

1. The Rule of Rational Life describes optimal production behavior for competitive firms, but NOT for monopolies. True or False?

2. Marginal revenue product is equal to the marginal physical product multiplied by the quantity demanded. True or False?

3. If a firm is currently employing labor at a level such that MRPL > PL, then the firm would increase its profits by hiring more labor. True or False?

4. If the demand curve of a competitive firm is tangent to the low point on the AVC curve, the firm’s profits are the same whether it shuts down or produces. True or False?

5. If the average total cost of a product is $10 per unit and the price of the product is $5 per unit, the firm is losing $15 per unit produced. True or False?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in