Figure 9.12 -Refer to Figure 9.12.The Firm Represented in the Diagram _________

question 306

Multiple Choice

Figure 9.12
-Refer to Figure 9.12.The firm represented in the diagram _________.

• A) makes zero economic profit
• B) makes zero accounting profit
• C) should exit the industry
• D) should expand its output to take advantage of economies of scale

---

Definitions:

Sherman Act

A foundational antitrust law in the United States, enacted in 1890, aimed at preventing monopolistic practices and promoting competition.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting competition and preventing monopolies by prohibiting certain practices that could lead to anti-competitive behavior.

Federal Labor Law

Laws established by the federal government to regulate the relationship between employees, employers, and unions.

Closed Shops

describes workplaces that require employees to be members of a specific labor union both before and during their employment, a practice now largely illegal in the U.S.