Question

The government charges AT&T and Microsoft for being engaged in anticompetitive practice with violation of:             A) The Hart-Scott-Rodino Act (1976).             B)  The Celler-Kefayver Act (1950).            C)  The Federal Trade Comission Act (1914)             D) The Sherman Act (1890).  

.  An example of monopolistic competition is:  A) One large firm supplies all of the product to the market. B)  One firm supplies 60 percent of the product to the market and there are three other rival firms. C)  Many firms supply the same product essentially, but each has significant brand loyalty.         D) Two firms supply the entire market. .

.  Monopolistic competitive firm is different from perfectly competitive firm because:A)  There are many firms in the market

2. In the long-run it will earn zero economic profit
3. It is trying to minimize cost of production and maximize the profit
4. It has excess capacity & charges a higher price (markup)

   The labor demand is derived demand, because:             A)  Depends on the demand for the goods and services labor produces. B)  Is affected by the incomes of individuals C)  Depends on the wage rate. D)  Is affected by the number of people who are willing to work.

   The market supply for labor (movement along supply curve) is determined by:

                     A)  Changes in adult population.

                     B)  Changes in preferences and social norms.

                     C)  The relationship between the wage rate & quantity of labor supplied

                     D)  Changes in wealth, time in school & training.

Answer 1

1) The government charges AT&T and Microsoft for being engaged in anticompetitive practice with violation of The Sherman Act (1890). The Sherman Antitrust Act outlaws monopolies and cartels, to increase economic competitiveness. Hence the answer is option (D).

2) Monopolistic competition refers to large number of sellers selling differentiated products.An example of monopolistic competition is many firms supply the same product essentially, but each has significant brand loyalty. Hence the answer is option (C).