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:

Activism

The practice of campaigning or taking action to bring about political or social change.

Random Sampling

A method of sampling where every element of the population has an equal chance of being selected.

Luck Of The Draw

A phrase referring to the outcome being determined by chance rather than any controllable factors.

Probability Sampling

A sampling technique in which every member of the population has a known, non-zero chance of being selected.