Why does our government enforce antitrust legislation? A) ...

[Diane]

Why does our government enforce antitrust legislation?
 
  A) because monopolies are known to be unfair to their stockholders
  B) because monopolies are known to be unfair to their employees
  C) because the government wants to create competition in markets in the interests of promoting efficiency
  D) because the government wants to create competition in markets in the interests of promoting an equal distribution of income

Question 2

If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
 
  A) will earn higher economic profits.
  B) will earn an economic loss.
  C) will expand its output.
  D) will experience a rise in long-term average costs.

[bob]

Answer to Question 1

C

Answer to Question 2

B

[Diane]

Thank you

[bob]

Happy to help you