Author Question: The aim of antitrust policy is to: a. provide adequate incentives for inventors and entrepreneurs. ... (Read 63 times)

stevenposner · **on:** Jun 30, 2018

The aim of antitrust policy is to:
a. provide adequate incentives for inventors and entrepreneurs.
b. prevent firms from acquiring or exercising undue market power.
c. protect established firms by deterring new entry into industries.
d. regulate the prices charged by perfectly competitive firms.

Question 2

By restricting the amount of a good that may be imported:
a. quotas, increase prices, thus causing domestic producers to sell less than they would with free trade.
b. tariffs lower prices, thus allowing domestic producers to sell more than they would with free trade.
c. quotas increase prices, thus allowing domestic producers to sell more at higher prices than they would with free trade.
d. tariffs lower prices, thus causing domestic producers to realize lower total revenue.
e. quotas simply replace foreign production with domestic production.