Which of the following statements is not correct?
a. Two examples of early antitrust laws are the Sherman and Clayton Antitrust Acts.
b. Antitrust laws automatically prevent mergers between companies that produce similar products.
c. Antitrust laws give the government power to increase competition.
d. Antitrust laws can reduce social welfare if they prevent mergers that would lower costs through more efficient joint production.
b
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Use the information in Scenario 4.2. Suppose that the price of artichokes is increased slightly from $10. The total expenditure by consumers on artichokes will ________ and the number of artichokes sold will ________
A) rise, rise B) rise, fall C) fall, rise D) fall, fall
When a tax is placed on the sellers of cell phones, the size of the cell phone market
a. and the price paid by buyers both increase. b. increases, but the price paid by buyers decreases. c. decreases, but the price paid by buyers increases. d. and the price paid by buyers both decrease.