In the Absence of a Generally Accepted and Enforced System

question 229

Multiple Choice

In the absence of a generally accepted and enforced system of fair competition legislation,which of the following is likely to occur?

• A) All firms will join forces and form a cartel.
• B) A cost-efficient firm will form a natural monopoly.
• C) Consumers will likely enjoy prices that are below the cost of production.
• D) Gangster capitalism.
• E) All firms will charge the same price.

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Definitions:

Mississippi River

One of the longest rivers in North America, flowing from northern Minnesota to the Gulf of Mexico, and historically significant as a major transport route for trade, especially during the 19th century.

Santa Fe Trail

A historic trade route connecting Franklin, Missouri, with Santa Fe, New Mexico, used during the 19th century.

New Mexico's Commerce

Economic activities and trade occurring within New Mexico, often highlighting its unique position in the southwestern United States and its trade links.

Independence, Missouri

A city known for its historical significance, especially as the starting point of the Oregon, California, and Santa Fe trails, and the hometown of President Harry S. Truman.