Which Piece of Legislation Was Enacted to Prevent the Formation

question 43

Multiple Choice

Which piece of legislation was enacted to prevent the formation of trusts?

• A) the Clayton Act.
• B) the Federal Trade Commissions Act.
• C) the Sherman Antitrust Act.
• D) the Celler-Kefauver Act.

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Definitions:

Monopolistically Competitive

A market structure where many competing producers sell products that are differentiated from one another (e.g., by branding or quality) and hence are not perfect substitutes.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, measuring the firm’s performance beyond its accounting profit.

Long Run

A period in economics where all factors of production and costs are variable, allowing for full adjustment to any change.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and pricing over their product.