The monopoly issue is concerned with the fact that
(a) monopolies will charge what the traffic will bear in order to maximize their profits.
(b) monopolies will attempt to increase their profits by discriminating among their customers
and charge prices that they are willing to pay, instead of charging one price.
(c) monopolies will be able to charge higher prices and earn higher rates of return than
competitive firms.
(d) all of the above apply.
Question 2
Regarding the stock market crash of 1929, evidence shows that
(a) no one expected trouble in the stock market before the October 1929 crash.
(b) there was doubt about the speculative heights of stock prices as they continued to
rise and more money continued to pour into the market.
(c) only active support by the New York Federal Reserve Bank during the summer and
fall of 1929 enabled the bull market to last until October.
(d) investment trusts and nonbanking money sources correctly anticipated the downturn.
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