Question 1 (1 point) The possibility that asymmetric information can lead to a g
ID: 1244941 • Letter: Q
Question
Question 1 (1 point) The possibility that asymmetric information can lead to a general reduction in product quality in an industry is known as: Question 1 options: caveat emptor. the free-rider problem. market failure. the lemons problem. Question 2 (1 point) A firm complains that another firm's advertising is misleading. The firm would send its complaint to: Question 2 options: the Robinson-Patman Agency. the Federal Trade Commission. the EPA. the Justice Department. Question 3 (1 point) The effectiveness of regulation is mitigated when: Question 3 options: individuals reduce their vigilance toward safety when additional safety regulations are implemented. firms engage in creative response. individuals generate a "feedback effect". all of the above. Question 4 (1 point) The government regulates monopolies because: Question 4 options: monopolies produce less than the socially desirable level of output. monopolies generate inefficiency by creating a misallocation of resources. monopolies price their output above the marginal cost of production. all of the above. Question 5 (1 point) Which of the following is not a key antitrust law? Question 5 options: The Robinson-Patman Act. The Contestable Markets Act The Federal Trade Commission Act. The Sherman Act. The Clayton Act. 6. Protecting consumers from problems arising from asymmetric information is a rationale for Question 6 options: the regulation of natural monopolies. the regulation of non monopolistic industries. allowing corporate mergers. government ownership of the means of production. 7. In practice, regulators generally Question 7 options: require firms to set price equal to marginal cost. allow firms to do whatever they want. require firms to make losses. require firms to set price equal to average cost. 8. If the natural monopoly shown in the accompanying graph uses marginal cost pricing, then: Question 8 options: it will make an economic loss. it will make short-run economic losses but long-run economic profits. it will reap long-run positive economic profit. it will make zero economic profit. 9. The Sherman Act outlaws Question 9 options: monopolization. price discrimination. the existence of monopolies. mergers. 10. Suppose technological change occurs so that a regulated firm could produce the product at substantially lower costs. Further, the regulatory agency requires the firm to lower prices to consumers, but the reduction in price is less than the reduction in costs so that profits for the firm increase too. This would be evidence in support of Question 10 options: the share-the-gains, share-the-pains theory of regulation. a public interest theory of regulation that says regulators always act in the best interests of consumers. the capture theory of regulation. no current theory of regulation. 11. Using the United States as a whole would be inappropriate as the relevant geographic market when an antitrust case involved Question 11 options: two oil producers. two auto producers. CNN and FOX. two homebuilders.Explanation / Answer
pls post 3 questions per post ill help you you will get A+ 1 c 2 b 3 d