Because of the Rise of Global Competition and Free Trade

question 79

Multiple Choice

Because of the rise of global competition and free trade,

• A)antitrust policy serves no purpose
• B)antitrust policy may be less necessary than previously thought
• C)U.S.industrial concentration poses more of a threat to consumers
• D)U.S.markets are becoming less contestable
• E)U.S.manufacturers are seeking fewer trade barriers

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Definitions:

Average Cost

An alternative term for average total cost; the total cost divided by the quantity of output produced.

Deadweight Loss

A reduction in economic effectiveness that happens when a product or service does not reach, or cannot reach, its equilibrium state.

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit.

Consumer Surplus

The bifurcation between what a consumer wishes to pay for a service or good, and what ends up being spent.