Question

1. When firms have the ability to restrict output, raise nrices, stifle competition, and inhibit innovation the market failure involved is: A. Public goods. B. Externalities. C. Market power. D. Inequities. 2. The major aim of government regulation is to: A. Control the structure of an industry. B. Alter industry behavior. C. Prevent monopolies from forming. D. Restrict competition. 3. Which of the following can the government use to alter both firm behavior and industry structure? A. Deregulation B. Regulation C. Antitrust laws D. Tax policy 4. Which of the following is used as an antitrust tool is used that focuses on the structure of industry? A. Price regulation B. Profit regulation C. Forbid business practices such as advertising D. Prohibit mergers and acquisitions 5. A natural monopoly is a desirable market structure because: A. It allows the producer to earn greater profit than is possible under competition. B. It allows the producer to deliver a higher quality product to the market. C. It allows the producer to deliver products to the market at the lowest possible cost. D. The jobs it creates pay higher wages than those in a competitive industry.

Answer 1

. (c) market priser go (c) The majo Ret peruser guies from the ability to restrict pat raise prices, stifle Competition and Inhibit Inovation the market failure. (C) The major aum of the governmat seg is to prevent monopolies from from as it reduces Competition and increases pofit 3. B. Regulation & the way governmod use to atter both firm behavior and Industry Struction 4o Deposhibit magas and acquisition to used as an anditsust tool ů used that focuses on the Stoucture of Indudsly. 5. Natural monopoly Es a desirable mearket Structure because (0) A allows the produced to deliver products to the makel at the truest possible Cost.