The first antitrust law passed was the ___________.

Clayton Act
Federal Trade Commission Act
Robinson-Patman Amendment
Sherman Act

The _______ the number of people who share the surplus created by the regulation, the _______ is the demand for regulation, and the _______ the surplus per person generated, the _______ is the supply of regulation.

larger; larger; smaller; smaller
smaller; smaller; smaller; smaller
larger; smaller; smaller; larger
smaller; larger; larger; larger

Each year, a group spends $10 million lobbying for a change in existing regulations, but no politician plans to support alternative regulations. There ____________________.

will never be an equilibrium
will be a political equilibrium when the politicians change the regulations
will be a political equilibrium when the lobby group stops spending
is a political equilibrium

According to public interest theory, when a monopoly exists politicians will introduce regulations that will ______________________.

increase prices and increase the level of output
decrease prices and marginally increase the level of output
decrease prices and keep the level of output constant
increase output and decrease prices to their competitive levels

The political equilibrium always achieves __________________________.

either efficiency or the maximization of deadweight loss
the maximization of producer surplus
efficiency
either efficiency or the maximization of producer surplus

When a marginal cost pricing rule is imposed on a natural monopoly, _____________________.

total surplus is maximized and the monopoly makes an economic profit
the monopoly makes a normal profit
the monopoly makes an economic profit
total surplus is maximized and the monopoly incurs an economic loss

If a natural monopoly succeeds at capturing the regulator, then the monopoly will produce the quantity at which _______________________.

marginal revenue equals price
average total cost equals price
marginal cost equals price
marginal revenue equals marginal cost

_______ would exists if oil producers decided to restrict output so that they can make a larger profit.

Monopolistic competition
A monopoly
An oligopoly
A cartel

If prices and profit fall following the deregulation of an oligopoly, then the regulation _________________.

increased competition
should be reinstated
must have been serving the interest of the consumer
must have been serving the interest of the producer

_______ is an alternative to regulation as a means of regulating markets.

The imposition of prices
Negative publicity
The threat of incarceration
Antitrust law

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