Question

QUESTION 6

1. Positive market feedback refers to a tendency for

   		a particular product to come into favor with additional consumers because other consumers have chosen to purchase the product.
   		potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating producing more output than the quantities produced by firms already in the industry.
   		potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating setting their prices above prices established by firms already in the industry.
   		price leaders to respond to an increase in market demand by increasing the prices of their products.

1 points   

QUESTION 7

1. The Federal Trade Commission (FTC) is a regulatory agency that is responsible for preventing firms from engaging in misleading advertising. This type of regulation is known as

   		the Federal Register.
   		social regulation.
   		the market share test.
   		economic regulation.

1 points   

QUESTION 8

1. When U.S. Steel, a steel producer, bought control of iron ore companies at the beginning of the 20th century, the company was initiating

   		a horizontal merger.
   		a cartel.
   		an expropriation.
   		a vertical merger.

1 points   

QUESTION 9

1. Section 1 of the Sherman Antitrust Act makes it illegal to

   		have an oligopoly.
   		price discriminate.
   		form a monopolistically competitive firm.
   		restrain trade.

Answer 1

6. Positive market feedback refers to a tendency for a particular product to come into favor with additional consumers because other consumers have chosen to purchase the product. Hence, option(A) is correct.

7. The Federal Trade Commission (FTC) is a regulatory agency that is responsible for preventing firms from engaging in misleading advertising. This type of regulation is known as social regulation. Hence, option(B) is correct.

8. When U.S. Steel, a steel producer, bought control of iron ore companies at the beginning of the 20th century, the company was initiating a vertical merger. Hence, option(D) is correct.

9. Section 1 of the Sherman Antitrust Act makes it illegal to restrain trade. Hence, option(D) is correct.