Question

41) Suppose a monopolist’s price is less than average variable cost at the output level where...

41) Suppose a monopolist’s price is less than average variable cost at the output level where marginal revenue equals marginal cost. The firm will:

42) The federal government agency that plays a major role in antitrust enforcement is the:

43) Two rival movie theater chains in the same city coming together to form a single organization would be an example of a:

44) Which of the following statements about strikes is not true?

45) The most likely source of government cash transfers to the poor is:

there is no options

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Answer #1

(41) The firm will shut down (since Price < AVC, firm will shut down).

(42) Enforcement of antitrust law is done by Federal Trade Commission.

(43) Horizontal merger (collusion among rival firms at same stage of operations is called horizontal (merger).

(44) Option statements are not given.

(45) Most likely source of government cash transfers to the poor is Public aid.

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