Exam 12: Antitrust Policy and Regulation

In accordance with their merger guidelines, the Justice Department and the Federal Trade Commission would probably challenge a merger if the

If one includes carbonated soft drinks, powdered soft drinks, bottled water, and juice drinks in the definition of the beverage industry, one is using a

If powdered soft drinks were perfect substitutes for carbonated soft drinks, then the demand curve for carbonated soft drinks would

A massive wave of mergers and consolidations in the United States 100 years ago was made possible by

How do the FTC and the Justice Department use the 5-percent rule to define the market in which firms compete?

There is more controversy among economists about the effects of vertical restraints than the effects of horizontal restraints.

Since the 1980s, U.S. industries have become more regulated.

When a clothing manufacturer merges with a retail clothing store chain, the merger is considered a

If an industry is a natural monopoly, then for a given output level the average total cost of two individual firms in the industry is higher than the average total cost of one firm.

Which of the following gives the government the authority to take action against price fixing?

In the past, the Interstate Commerce Commission (ICC) regulated the trucking industry by

Antitrust policy attempts to prevent collusion among sellers and to prevent restraint of trade resulting from monopoly power.

Antitrust policy aims at restoring confidence in government.

Frequently in American economic history, the government has regulated a firm's prices

The relative infrequency of government-forced breakups in recent years may be due to

The table below shows the market shares of three industries. Use the FTC merger guidelines to determine whether the following changes in the industries would be permitted:

Since 1890, the government has ordered the breakup of

Incentive regulation is sometimes made difficult by asymmetric information problems.

When there are economies of scale in the production of a product, the long-run average total cost curve

Exhibit 12-1 -Exhibit 12-1 shows the market shares of eight firms in an industry. Which of the following mergers would most likely be challenged by the U.S. Department of Justice?