Which of the following statements is true?
a. Antitrust policies are government policies designed to reduce the profitability of a monopoly and push production closer to the social optimum.
b. Antitrust laws can promote greater competition.
c. Average cost pricing sets price equal to marginal cost, where the demand curve intersects the marginal cost curve.
d. Both antitrust policies are government policies designed to reduce the profitability of a monopoly and push production closer to the social optimum and antitrust laws can promote greater competition are true.
Ans: d. Both antitrust policies are government policies designed to reduce the profitability of a monopoly and push production closer to the social optimum and antitrust laws can promote greater competition are true.
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New England possessed a comparative advantage in producing cotton. Producers in this region produced cotton at the lowest possible opportunity cost in colonial America
Indicate whether the statement is true or false
Who is recognized as the founder of public choice theory?
a. James Buchanan. b. Steve Forbes. c. Joseph Pechman. d. Adam Smith.