An increase in price causes exit from a constant-cost industry.

The first important law regulating monopolies in the United States was

A) the Clayton Act, which was passed in 1890. B) the Sherman Act, which was passed in 1890. C) the Grant Act, which was passed in 1890. D) the Federal Trade Commission Act, which was passed in 1914.

A tax is efficient if

A) it is based on profits earned and not on wages. B) it imposes a small excess burden relative to the revenue it raises. C) it encourages saving and investment. D) individuals with the lowest incomes pay proportionately lower taxes than individuals with the highest incomes.