Question

In: Economics

Unit costs are defined as a.   Marginal costs b.   Total costs c.   Average costs d.   Implicit...

Unit costs are defined as

a.   Marginal costs

b.   Total costs

c.   Average costs

d.   Implicit costs

e.   Inverse costs

Group of answer choices

2.

In the 1890s, German courts were taking a very different approach to cartels and antitrust. What did the German court rule in the pulp cartel case?

a. It ruled the cartel was in monopoly that was illegal
b. It ruled that cartels were illegal, but that the wood pulp cartel was not a true cartel and therefore legal
c. It ruled that cartels were legal and were in fact beneficial to the companies, their workers, and society in general
d. It ruled that the cartel was illegal because it had more than 90 percent of the wood pulp market
e. It ruled that cartels were illegal per se

Group of answer choices

Suppose demand increases in a price taker market. Prices will increase due to market competition. The higher prices will generate economic profits which will lead to the entry of new producers due to
a. arbitrage
b. market competition
c. the competition of capital
d. government antitrust prosecution

Group of answer choices

Solutions

Expert Solution

Ans 1

Unit costs are defined as total cost. Since it represents the total expense involved in creating the one unit of a product or service.

Ans 2

In the 1890s, German courts were taking a very different approach to cartels and antitrust. As the German court rule in the pulp cartel case  ruled that cartels were legal and were in fact beneficial to the companies, their workers, and society in general. Since it was not violating the basic two condition on the basis of which the cartel is considered illegal that is section 1 of the Trade Regulation Act which aims at promoting the interest of society and the another condition that the personal liberty of the individual is not imparied by cartel contracts in contrary to the act.

Ans 3

Suppose demand increases in a price taker market. Prices will increase due to market competition. The higher prices will generate economic profits which will lead to the entry of new producers due to market competition. Since in a perfectly competative market ,companies and individual accept the prevailing prices in a market and all producers are considered to be price takers .

Rahul Sunny answered 2 years ago
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