Antitrust Action Restructures a Previously Monopolized Industry into a Competitive

question 74

Multiple Choice

Antitrust action restructures a previously monopolized industry into a competitive industry. If economies of scale are unimportant in the industry, the expected result of this movement from monopoly to competition is

• A) a reduction in output and an increase in price in the industry.
• B) a reduction in both price and output in the industry.
• C) an increase in both price and output in the industry.
• D) an increase in output and a reduction in price in the industry.

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Definitions:

Frigid

in a non-sexual context, means very cold in temperature; in a psychological context, it may describe a person having a lack of sexual responsiveness or desire.

Madam

A woman who manages or owns a brothel; often used as a polite form of address for a woman.

Pimp

A person who controls and profits from the commercial exploitation of others, typically in the context of prostitution.

Sex Trade

The industry that includes the exchange of sexual services, such as prostitution, pornography, and erotic entertainment, for money or goods.