Question

QUESTION 17

1. Which one of the following industries is best classified as an oligopoly?

   		fast food restaurants
   		textbook publishers
   		wheat farms in the United States
   		retailing

1 points   

QUESTION 18

1. Which of the following is NOT exempt from antitrust laws?

   		labor unions
   		airlines
   		public transit systems
   		professional baseball

1 points   

QUESTION 19

1. 
   
   
   In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would produce

   		at Q1 output rate.
   		past the Q3 output rate.
   		at Q3 output rate.
   		at Q2 output rate.

1 points   

QUESTION 20

1. Which of the following statements about natural monopoly is correct?

   		Governments regulate natural monopolies in order to ensure that the firm earns a normal profit.
   		Governments regulate natural monopolies in order to prevent them from making profits.
   		Governments regulate natural monopolies in order to ensure that costs of production are minimized.
   		Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.

Answer 1

Q17. Text book publisher are best classifieds as oligopoly

Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence.

Q18. Airlines is not exempt from antitrust laws.

Q19. You have not uploaded the graph or there is some technical issues in site

Q20.Governments regulate natural monopolies in order to prevent them from making profits. Is the correct option, because natural monopoly can earn super normal profit which made consumer worse off so government regulate them.