Business Conduct That Is Illegal Per Se Is Illegal

question 115

Multiple Choice

Business conduct that is illegal per se is illegal

• A)only if there is no economic rationale for it
• B)only if it results in a monopoly
• C)without regard to its economic rationale or consequences
• D)only if it is prohibited by the Clayton Act
• E)whether or not Congress has passed legislation prohibiting the practice

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Definitions:

Marginal Revenue Curve

A graphical representation showing how a firm's revenue changes with each additional unit of output sold, typically declining in perfectly competitive markets.

Total Revenue Curve

A graph showing how total revenue changes as the quantity sold of a product or service changes, holding the price constant.

Barriers to Entry

Factors that prevent or hinder companies from entering into a specific market or industry.

Monopolist's Demand Curve

Represents the total market demand faced by a monopolist, indicating how price affects the quantity of output demanded.