Author Question: According to the U.S. Supreme Court's 1920 ruling on U.S. Steel, a. all monopolies are illegal b. ... (Read 17 times)

Anajune7 · **on:** Jun 30, 2018

According to the U.S. Supreme Court's 1920 ruling on U.S. Steel,
a. all monopolies are illegal
b. all oligopolies violate the Sherman Antitrust Act
c. large firms cannot be found to be in violation of the Sherman Antitrust Act
d. mere size is no offense
e. possession of market power is sufficient for a firm to be found in violation of the Sherman Antitrust Act

Question 2

Suppose that a long-run adjustment in a perfectly competitive industry results in decreased industry output but leaves price unchanged. Which of the following must be true?
a. The market demand curve did not shift
b. The market demand curve shifted left; the market supply curve shifted right
c. The market supply curve shifted left; the market demand curve shifted right
d. Both market supply and demand increased, but supply increased more than demand
e. The industry is a constant-cost industry