ECON 210 - Module 1 Quiz - Chapters 1 & 2. complete solution graded A 1005 correct

Question 1 If natural monopolies are regulated to produce where there is resourceallocative efficiency, they produce where price equals marginal cost. price equals average total cost. marginal revenue equals average total cost.You Answered marginal revenue equals marginal cost. Question 2 0 / 0 pts The Sherman Act of 1890 set up the Federal Trade Commission (FTC) to deal with "unfair methods of competition." prohibited suppliers from offering special discounts to large chain stores without offering them to everyone else. empowered the FTC to deal with false and deceptive acts or practices. made interlocking directorates ! made monopolization of trade a misdemeanor. Question 3 If there are six firms in an industry and the market shares of the firms are 32 percent, 25 percent, 19 percent, 9 percent, 8 percent and 7 percent, the Herfindahl index is