Antitrust laws
a. prevent firms from maximizing profits.
b. allow the government to prevent mergers, even ones that would benefit consumers.
c. require the government to measure both the benefits and costs of a potential merger.
d. All of the above are correct.
b
You might also like to view...
Suppose a perfectly competitive market is in a long-run equilibrium when a permanent decrease in the market demand occurs. In the long run, which of the following definitely occurs?
A) The price decreases. B) The number of firms decreases. C) The firms' marginal cost increases. D) Marginal revenue increases.
Which of the following is an example of thinking at the margin?
(A) Deciding to buy a car you don't really like because it is significantly less expensive than the one you want. (B) Putting all of your money in a savings account because the interest rate is so high. (C) Determining whether it is better to spend your savings on a new CD player or on a television. (D) Deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time.