How do you think the theory of contestable markets has been used as a means of arguing for weaker enforcement of antitrust laws? Explain
What will be an ideal response?
The theory of contestable markets can be used to argue for weaker enforcement of antitrust laws by observing that a monopoly market may not prove that a firm is exploiting its market power to control the price level since excess profits will quickly lead to entry by new firms.
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Since few Americans would ever be willing to pay more for a sandwich than for a pair of jeans,
A) for most Americans clothing is more important than food. B) for most Americans clothing is more valuable than food. C) for most Americans clothing has more monetary value than food. D) most Americans derive their values from the culture rather than biological necessities. E) most Americans have little difficulty obtaining enough to eat.
A good or service or a resource is nonrival if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from enjoying its benefits. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.