« previous next »

Author Question: The market for eyeglasses is monopolistically competitive. It follows that firms in the eyeglass ... (Read 9 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
on: Jun 30, 2018
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

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 30, 2018
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

tuffie

  • Hero Member
  • *****
  • Posts: 534
Reply #2 on: Jun 30, 2018
Correct answers!


jessofishing

  • Sr. Member
  • ****
  • Posts: 329
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Norway lobsters on sale at a Spanish market Norway lobsters on sale at a Spanish market
Non-competitive inhibition Non-competitive inhibition
Competitive inhibitor Competitive inhibitor
Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Competitive firms and maximization Competitive firms and maximization
Video: Ionic bonds - role of ions in the body

For a complete list of videos, visit our video library