The following table shows the total output produced by the six firms as well as

Question

The following table shows the total output produced by the six firms as well as the total industry output for four industries. What is the concentration ratio for Industry A? 71% 81% 86% 88% Which of the following statements is true? The proper scope of antitrust laws is well defined and definite Antitrust laws focus on granting certain firms the option to form a cartel. Policymakers have the difficult task of determining whether some firms decisions have legitimate purpose. even though they appear anti-competitive. There is always a need for policymakers to try to limit a firm's pricing power. regardless of whether the firm's market is competitive, a monopoly, or an oligopoly. Since natural monopolies have a declining average coat curve, regulating natural monopolies by setting price equal to marginal cost would cause the monopolist to operate at a loss. result in a less than optimal total surplus. maximize producer surplus result in higher profits for the monopoly. Which of the following groups or entities has the authority to initiate legal suits to enforce antitrust laws? The U.S. Justice Department Private citizens Corporations All of the above are correct. One method used to control the ability of firms to capture monopoly profit in the United States it through government purchase of products produced by monopolists. government distribution of a monopolist's excess production. enforcement of antitrust laws. regulation of firms in highly competitive markets. The manufacturer of Bozz Radios sells radios to retail stores for $500 each, and it requires the retail stores to charge customers $550 per radio. Any retailer that charges less than $550 would violate its contract with Bozz Radios. What do economists call this business practice? Predatory pricing Resale price maintenance Tying Leverage When a natural monopoly exists, it is always cost effective for government-owned firms to produce the product. never coat effective for one firm to produce the product. always cost effective for two or more private firms to produce the product. never cost effective for two or more private firms to produce the product.

Explanation / Answer

15
(13250/45350)*100=29.2172%
(10975/45350)*100=24.2006%
(8175/45350)*100=18.0264
(4275/45350)*100=9.4266
Adding thse we get 81%
Ans is b
16
Ans is c
17
Since natural monopolies have a declining avergae cost curvee,regulating natural monopolies by setting price equal to margiinal cost would
Ans is a
18
Ans is D

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