US19L1
1
To regulate monopoly and oligopoly, the government implements __________________.
legislation and regulation
antitrust law and monopoly law
monopoly and oligopoly legislation
regulation and antitrust law
2
A regulation that gives a firm an incentive to operate efficiently and keep costs from skyrocketing is ________________.
a cost regulation scheme
an incentive regulation scheme
an efficiency scheme
a skyrocketing regulation scheme
3
A law that prohibits market behavior such as monopoly and monopolistic practices is ______________.
a consumer surplus law
an antitrust law
an anti-monopoly law
a trust law
4
The factors that affect the demand for regulation include all of the following except __________________.
producer surplus per firm
the type of good or service
consumer surplus per buyer
the number of buyers and firms
5
According to public interest theory, ________________________.
price regulations are unconstitutional
markets achieve efficiency through regulation
deadweight loss increases over time
monopoly practices last forever
6
The capture theory holds that regulations are supplied to maximize _______________________.
marginal product
economic profit
total sales
consumer surplus
7
When one firm can supply the market at a lower average cost than two or more firms can, there is a ______________.
copyright
natural monopoly
legal monopoly
cost monopoly
8
When a marginal cost pricing rule is enforced, marginal cost equals ______________________.
average total cost
price
marginal revenue
total revenue
9
An average cost pricing rule sets __________________________.
marginal revenue equal to average total cost
price equal to average total cost
price equal to average variable cost
marginal revenue equal to average variable cost
10
A rate of return regulation enables a regulated firm to ___________________________.
earn a specified percent return on its investments
earn a specified percent return on its capital
pay a specified percent return to its investors
pay a specified percent return to its employees
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