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.

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Definitions:

Voting Rights

The rights of shareholders to vote on company matters, typically exercised at annual meetings.

Dow Jones Industrial Average (DJIA)

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States, representing a significant indicator of the market's overall health.

Blue-Chip Stocks

Shares in large, reputable companies known for their ability to operate profitably in good and bad economic times, often paying dividends.

Divisor

A number by which another number, typically the numerator of a fraction, is divided.