Which of the Following Statements Is Correct

question 233

Multiple Choice

Which of the following statements is correct?

• A)Two examples of early antitrust laws are the Clinton and Stigler Antitrust Acts.
• B)Antitrust laws automatically prevent mergers between companies that produce similar products.
• C)Antitrust laws reduce the government's power to regulate private companies.
• D)Antitrust laws can reduce social welfare if they prevent mergers that would lower costs through more efficient joint production.

---

Definitions:

Marginal Revenue Product

Incremental revenue obtained from the use of one more unit of a production input, such as labor or capital.

Marginal Physical Product

The additional output resulting from using one more unit of a physical input, holding all other inputs constant.

Complement To Labor

Goods, services, or technologies that enhance the productivity or efficiency of labor.

Demand Curve For Labor

A graphical representation showing the relationship between the quantity of labor demanded by employers and the wage rate.