Why were Antitrust laws passed?

to prevent unfair, and non-competitive market situations

Perfect competition involves:

A large number of buyers & sellers

A natural monopoly would be ...

heavily regulated by the government

Why does the government regulate natural monopolies?

To prevent the monopoly from charging excessively high prices

Economies of Scale allow

lower production costs per unit of good produced

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Market Structures

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Questions 14

Answers

1
Why were Antitrust laws passed?
no one could keep their word
la crystie ballski saidski soski
to prevent unfair, and non-competitive market situations
to allow Monopolies to absorb smaller companies
2
Which market structure would have higher barriers of entry?
Perfect Competition
Oligopoly
3
owners of the 3 gas stations in town decide together when to raise & lower gas prices.
the Floopjoop
Monopoly
Perfect Competition
Oligopoly
4
Perfect competition involves:
Sellers working together to set prices
A large number of buyers & sellers
Little information is available to buyers
Difficulty entering & exiting the market
5
A natural monopoly would be ...
totally free to act without any restraint
organic
heavily regulated by the government
strategy to own everything according the laws of nature and physics
6
Why does the government regulate natural monopolies?
To increase competition in the market
Tensure the monopoly provides adequate, high-quality amount of the product
Abraham Shabivabits Shabubbabutts
To prevent the monopoly from charging excessively high prices
7
Which is NOT a characteristic of a monopoly?
Firm sells a unique product
One seller
Seller sets the market price
Entry into the market is easy
8
Which Federal government Agency has the task of preventing monopoly structures?
Federal Trade Commission
the Army
Internal Revenue Service
Federal Reserve Bank
9
Which market structure would most likely have companies with large Economies of Scale?
Poifect Competition
Perfect Competition
Oligopoly
Monopoly Competition
10
15 different individuals decide to open up Lemonade stands in the same community is an example of
Thoisty
Monopoly
Perfect Competition
Oligopoly
11
Which market structure would a power or gas company be?
Perfect Competition
natural monopoly
Monopolistic Competition
Oligopoly
12
Why are Natural Monopolies such as power companies allowed to exist?
to allow Oligopoly
competition would be ineffient
wisdom and providence
dictatorship
13
Economies of Scale allow
no production costs per unit of good produced
higher production costs per unit of goods produced
lower production costs per unit of good produced
the negatives
14
Choosing a provider for a smartphone is an example of ....
Monopoly
Oligopoly
Perfect Competition
the Flopejope

Market Structures Flashcards | StudBud