« previous next »

Author Question: The market for eyeglasses is monopolistically competitive. It follows that firms in the eyeglass ... (Read 39 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 one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Competitive inhibition Competitive inhibition
Non-competitive inhibition Non-competitive inhibition
Reconstruction Drawing of Trajan's Market Reconstruction Drawing of Trajan's Market
Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
Video: Condensation and Hydrolysis Animation

For a complete list of videos, visit our video library