Which of the following hypothetical monopoly firms is least likely to be broken up under anti-trust law? A large agribusiness which buys up large amounts of farmland which it then does not farm. A grocery store that has convinced local banks not to issue loans to other grocery stores that attempt to open nearby. An automotive manufacturer that aggressively undercuts the prices of its competitors' cars until they are driven out of business. A restaurant that formerly had a single competitor, which went out of business because there were not enough customers for both firms to turn a profit. A manufacturing firm that earns profit by raising its prices significantly higher than they would be in a competitive market, but takes no steps to bar new firms from competing with it.
Which of the following hypothetical monopoly firms is least likely to be broken up under anti-trust law? A large agribusiness which buys up large amounts of farmland which it then does not farm. A grocery store that has convinced local banks not to issue loans to other grocery stores that attempt to open nearby. An automotive manufacturer that aggressively undercuts the prices of its competitors' cars until they are driven out of business. A restaurant that formerly had a single competitor, which went out of business because there were not enough customers for both firms to turn a profit. A manufacturing firm that earns profit by raising its prices significantly higher than they would be in a competitive market, but takes no steps to bar new firms from competing with it.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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