Question 1

Describe the Clayton Act.

Accepted Answer

The Clayton Act strengthened the Sherman

Question 2

In a natural monopoly,the government will try to set the price at which the demand curve intersects the monopolist's:

Accepted Answer

A) long-run marginal revenue curve. 
B) long-run marginal cost curve. 
C) long-run average total cost curve. 
D) long-run average fixed cost curve. 
A) long-run marginal revenue curve. 
B) long-run marginal cost curve. 
C) long-run average total cost curve. 
D) long-run average fixed cost curve.

Question 3

Which of the following government agencies is responsible for initiating actions against individuals or firms that are suspected of violating antitrust laws?

Accepted Answer

A) the Federal Trade Commission 
B) the Consumer Protection Agency 
C) the Department of Justice 
D) both A and C 
A) the Federal Trade Commission 
B) the Consumer Protection Agency 
C) the Department of Justice 
D) both A and C

Question 4

Natural monopoly occurs when:

Accepted Answer

A) the scale economies in production are so large that only a single firm can survive. 
B) there are firms joining together to limit output and raise prices. 
C) the government intervenes by putting barriers such as licenses or certifications. 
D) there are patents. 
A) the scale economies in production are so large that only a single firm can survive. 
B) there are firms joining together to limit output and raise prices. 
C) the government intervenes by putting barriers such as licenses or certifications. 
D) there are patents.

Question 5

In 1982,the U.S.government allowed AT&T to merge with the Regional Bell Operating Companies.

Accepted Answer

A) True 
 B)False

Question 6

Describe the Office Depot/Staples case.

Accepted Answer

When Office Depot and Staples attempted

Question 7

The Clayton Act was passed in order to:

Accepted Answer

A) declare that the telephone industry is a natural monopoly. 
B) strengthen the Sherman Act. 
C) change the focus of antitrust law from conduct to structure. 
D) all of the above 
A) declare that the telephone industry is a natural monopoly. 
B) strengthen the Sherman Act. 
C) change the focus of antitrust law from conduct to structure. 
D) all of the above

Question 8

A second firm will not enter a natural monopolistic market due to the large economies of scale.

Accepted Answer

A) True 
 B)False

Question 9

Recall the application about the British experience with private water firms in the 19th century,what does the water privatization show in terms of the distribution of water?

Accepted Answer

A) The water is a best managed when the government takes control. 
B) The water is a natural monopoly. 
C) The water distribution is optimized when the price is fixed. 
D) none of the above 
A) The water is a best managed when the government takes control. 
B) The water is a natural monopoly. 
C) The water distribution is optimized when the price is fixed. 
D) none of the above

Question 10

The Clayton Act extends antitrust policy to proprietorships and partnerships.

Accepted Answer

A) True 
 B)False

Question 11

The Federal Trade Commission was concerned that a merger between Continental Baking and Interstate Bakeries would lower bread prices in the bread market.

Accepted Answer

A) True 
 B)False

Question 12

Describe the Wonder Bread case.

Accepted Answer

Interstate Bakeries wanted to purchase C

Question 13

A central issue in the government's lawsuit against A company that sells an X product and is looking to be involved in the integration of another of its products,thus requiring consumers to purchase both of them together rather than separately.This practice is known as:

Accepted Answer

A) predatory pricing. 
B) price fixing. 
C) collusion. 
D) tie-in sales. 
A) predatory pricing. 
B) price fixing. 
C) collusion. 
D) tie-in sales.

Question 14

What are tie-in sales?

Accepted Answer

Tie-in sales are business prac

Question 15

Recall the application about Penzoil and Quaker State,what happened to the prices of their product when the merger occurred

Accepted Answer

A) Penzoil raised its product prices. 
B) Quaker State raised its product prices. 
C) Penzoil decreased its product prices. 
D) Quaker decreased its product prices. 
A) Penzoil raised its product prices. 
B) Quaker State raised its product prices. 
C) Penzoil decreased its product prices. 
D) Quaker decreased its product prices.

Question 16

Define a natural monopoly.

Accepted Answer

A natural monopoly is a situat

Question 17

Name three industries in which the government has broken up a monopoly.

Accepted Answer

Student responses ma

Question 18

When Staples and Office Depot attempted to merge in 1997:

Accepted Answer

A) the Federal Trade Commission convinced the courts to block the merger on the grounds that the merger would lead to less competition in the office supplies industry. 
B) it was determined that Office Depot and Staples were not substitutes for each other. 
C) the Federal Trade Commission believed that the merger would increase the competitiveness of the office supplies industry. 
D) evidence showed that the merger would lead to lower prices on office supplies. 
A) the Federal Trade Commission convinced the courts to block the merger on the grounds that the merger would lead to less competition in the office supplies industry. 
B) it was determined that Office Depot and Staples were not substitutes for each other. 
C) the Federal Trade Commission believed that the merger would increase the competitiveness of the office supplies industry. 
D) evidence showed that the merger would lead to lower prices on office supplies.

Question 19

Describe the Hart-Scott-Rodino Act.

Accepted Answer

The Hart-Scott-Rodin

Question 20

Which of the following is NOT an antitrust policy used by the government?

Accepted Answer

A) regulating business practices 
B) blocking mergers 
C) arranging a group of trustees 
D) breaking up monopolies 
A) regulating business practices 
B) blocking mergers 
C) arranging a group of trustees 
D) breaking up monopolies

Describe the Clayton Act.

In a natural monopoly,the government will try to set the price at which the demand curve intersects the monopolist's:

Which of the following government agencies is responsible for initiating actions against individuals or firms that are suspected of violating antitrust laws?

Natural monopoly occurs when:

In 1982,the U.S.government allowed AT&T to merge with the Regional Bell Operating Companies.

Describe the Office Depot/Staples case.

The Clayton Act was passed in order to:

A second firm will not enter a natural monopolistic market due to the large economies of scale.

Recall the application about the British experience with private water firms in the 19th century,what does the water privatization show in terms of the distribution of water?

The Clayton Act extends antitrust policy to proprietorships and partnerships.

The Federal Trade Commission was concerned that a merger between Continental Baking and Interstate Bakeries would lower bread prices in the bread market.

Describe the Wonder Bread case.

A central issue in the government's lawsuit against A company that sells an X product and is looking to be involved in the integration of another of its products,thus requiring consumers to purchase both of them together rather than separately.This practice is known as:

What are tie-in sales?

Recall the application about Penzoil and Quaker State,what happened to the prices of their product when the merger occurred

Define a natural monopoly.

Name three industries in which the government has broken up a monopoly.

When Staples and Office Depot attempted to merge in 1997:

Describe the Hart-Scott-Rodino Act.

Which of the following is NOT an antitrust policy used by the government?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 13: Controlling Market Power: Antitrust and Regulation

Describe the Clayton Act.

In a natural monopoly,the government will try to set the price at which the demand curve intersects the monopolist's:

Which of the following government agencies is responsible for initiating actions against individuals or firms that are suspected of violating antitrust laws?

Natural monopoly occurs when:

In 1982,the U.S.government allowed AT&T to merge with the Regional Bell Operating Companies.

Describe the Office Depot/Staples case.

The Clayton Act was passed in order to:

A second firm will not enter a natural monopolistic market due to the large economies of scale.

Recall the application about the British experience with private water firms in the 19th century,what does the water privatization show in terms of the distribution of water?

The Clayton Act extends antitrust policy to proprietorships and partnerships.

The Federal Trade Commission was concerned that a merger between Continental Baking and Interstate Bakeries would lower bread prices in the bread market.

Describe the Wonder Bread case.

A central issue in the government's lawsuit against A company that sells an X product and is looking to be involved in the integration of another of its products,thus requiring consumers to purchase both of them together rather than separately.This practice is known as:

What are tie-in sales?

Recall the application about Penzoil and Quaker State,what happened to the prices of their product when the merger occurred

Define a natural monopoly.

Name three industries in which the government has broken up a monopoly.

When Staples and Office Depot attempted to merge in 1997:

Describe the Hart-Scott-Rodino Act.

Which of the following is NOT an antitrust policy used by the government?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters