-Which of the Following Practices Is Restricted by the Antitrust

question 73

Multiple Choice

-Which of the following practices is restricted by the antitrust laws of the United States?

• A)Merger of smaller firms into a large firm
• B)Entry of new firms in the long run
• C)Standardization of products in a market
• D)Exit of non-performing firms in the long run
• E)Quality differentiation by competitive firms

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Definitions:

Article VI

A section of the United States Constitution that establishes the Constitution, federal statutes, and treaties as the supreme law of the land, overriding state laws.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.

Average Product

Output per unit of a particular input.

Perfect Competitor

An idealized firm that has no market power and operates in a market with many buyers and sellers where all have perfect information.