The market for eyeglasses is monopolistically competitive. It ...

[tuffie]

The market for eyeglasses is monopolistically competitive. It follows that firms in the eyeglass industry:
 a. could earn economic profit in long-run equilibrium.
 b. could earn economic profit in short-run equilibrium.
  c. charge a price equal to marginal cost.
 d. charge a price equal to the minimum average total cost.

Question 2

Explain the difference between the per se and rule of reason standards of the antitrust laws

[jessofishing]

Answer to Question 1

b

Answer to Question 2

Antitrust laws treat agreements that could lessen competition using a rule of reason standard intended to balance the possible competitive benefits it produces against the potential costs. Agreements like naked price fixing are per se violations of antitrust law, automatically treated as illegal if detected.

[tuffie]

Correct answers!

[jessofishing]

Great! Please up vote