Question 1

All of the following are examples of restraints of trade except which one?

Accepted Answer

A) market division 
B) price fixing 
C) bid rigging 
D) recoupment 
A) market division 
B) price fixing 
C) bid rigging 
D) recoupment D

Question 2

In the United States, antitrust law focuses primarily on all of the following except which one?

Accepted Answer

A) furthering the social interest 
B) the means to monopolize a market 
C) consumer welfare 
D) efficiency 
A) furthering the social interest 
B) the means to monopolize a market 
C) consumer welfare 
D) efficiency A

Question 3

The legality of which of the following actions would be determined using the rule- of- reason?

Accepted Answer

A) an agreement with a competitor firm to not sell to a particular customer 
B) an exclusive dealings contract with a customer 
C) an agreement with a competitor firm submit a low bid on a contract 
D) an agreement with a competitor firm submit a high bid on a contract 
A) an agreement with a competitor firm to not sell to a particular customer 
B) an exclusive dealings contract with a customer 
C) an agreement with a competitor firm submit a low bid on a contract 
D) an agreement with a competitor firm submit a high bid on a contract B

Question 4

If a local dairy farm sells its ice cream to a distributor and contractually restricts the distributor from reselling the ice cream outside of the south east, this is an example of _______

Accepted Answer

A) territorial confinement 
B) exclusive dealing 
C) a requirements contract 
D) a tying arrangement 
A) territorial confinement 
B) exclusive dealing 
C) a requirements contract 
D) a tying arrangement

Question 5

If a grocery store offers a five percent discount to senior citizens, this is an example of and is_______ .

Accepted Answer

A) price discrimination; always illegal per se 
B) conditional sales; always illegal per se 
C) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly 
D) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly 
A) price discrimination; always illegal per se 
B) conditional sales; always illegal per se 
C) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly 
D) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly

Question 6

Four firms agree to operate as a monopoly and charge the monopoly price of $10 for their product and (jointly)produce the monopoly quantity of 50,000 units. If the competitive price for the product is $6, under the Clayton Act these four firms face treble damages of_______ .

Accepted Answer

A) $600,000 
B) $1,000,000 
C) $3,000,000 
D) $200,000 
A) $600,000 
B) $1,000,000 
C) $3,000,000 
D) $200,000

Question 7

All of the following actions are potential rule- of- reason violations except which one?

Accepted Answer

A) an agreement with a customer about the resale price the customer will charge for the product 
B) an agreement with a competitor firm to not sell to a particular customer 
C) an exclusive dealings contract with a customer 
D) an agreement with a customer about the markets in which the customer is allowed to resell the product 
A) an agreement with a customer about the resale price the customer will charge for the product 
B) an agreement with a competitor firm to not sell to a particular customer 
C) an exclusive dealings contract with a customer 
D) an agreement with a customer about the markets in which the customer is allowed to resell the product

Question 8

Each member of the European Union (EU)has its own national competition laws in addition to the EU competition laws.

Accepted Answer

A) True 
 B)False

Question 9

Business practices affected by the Clayton Act fall into each of these categories except which one?

Accepted Answer

A) price fixing 
B) conditional sales 
C) mergers 
D) price discrimination 
A) price fixing 
B) conditional sales 
C) mergers 
D) price discrimination

Question 10

The closer a market's Herfindahl- Hirschman Index (HHI)is to the_____ less competitive the market, which means there are_____ firms in the market.

Accepted Answer

A) 10,000; few 
B) 10,000; many 
C) 100; few 
D) 100; many 
A) 10,000; few 
B) 10,000; many 
C) 100; few 
D) 100; many

Question 11

If two firms located in the United States sell their products in the United States and in the European Union, the possible merger of the two firms could not be examined by the European Union competition authorities.

Accepted Answer

A) True 
 B)False

Question 12

Sail Away is competing in the sailboat market with Best Sails. Sail Away drops its price below its cost and, in doing so, drives Best Sails out of the market. Once Sail Away is a monopoly, they raise their price and enjoy economic profit. This is an example of .

Accepted Answer

A) market division 
B) predatory pricing 
C) resale price maintenance 
D) output restrictions 
A) market division 
B) predatory pricing 
C) resale price maintenance 
D) output restrictions

Question 13

In the European Union, resale price maintenance is generally illegal is the selling firm has more than a ______ percent market share of the product being sold or the buying firm makes more than a _____percent market share of the product purchases.

Accepted Answer

A) 50; 50 
B) 50; 30 
C) 30; 30 
D) 30; 50 
A) 50; 50 
B) 50; 30 
C) 30; 30 
D) 30; 50

Question 14

The European Union can impose fines of up to _____percent of the guilty firm;s worldwide total revenue.

Accepted Answer

A) 25 
B) 5 
C) 10 
D) 100 
A) 25 
B) 5 
C) 10 
D) 100

Question 15

If a pre- merger Herfindahl- Hirschman Index (HHI)is less than ______, the merger is unlikely to be challenged.

Accepted Answer

A) 2,200 
B) 1,500 
C) 10,000 
D) 1,000 
A) 2,200 
B) 1,500 
C) 10,000 
D) 1,000

Question 16

If Happy Campers, Campers R Us, and Happy Trails each have a market share of 22 percent, according to Chinese law, Happy Campers ______ be considered a dominant firm because the total market share across the three firms is _____percent.

Accepted Answer

A) would; 66 
B) would; 22 
C) would not; 66 
D) would not; 22 
A) would; 66 
B) would; 22 
C) would not; 66 
D) would not; 22

Question 17

All of the following are required to make a tying arrangement vulnerable to antitrust prosecution except which one?

Accepted Answer

A) There must be some nontrivial amount of commerce affected by the tying contract. 
B) There must be at least two products involved. 
C) The seller cannot have substantial market power in the market for the tying product. 
D) There must be proof of an actual tie between two products. 
A) There must be some nontrivial amount of commerce affected by the tying contract. 
B) There must be at least two products involved. 
C) The seller cannot have substantial market power in the market for the tying product. 
D) There must be proof of an actual tie between two products.

Question 18

Section 2 of the Sherman Act prohibits ________.

Accepted Answer

A) monopolies 
B) an attempt of one firm to become a monopoly through the use of unreasonably exclusionary conduct 
C) price fixing 
D) market division 
A) monopolies 
B) an attempt of one firm to become a monopoly through the use of unreasonably exclusionary conduct 
C) price fixing 
D) market division

Question 19

The minimum value of the Herfindahl- Hirschman Index (HHI)is_____ and the maximum value is_____ .

Accepted Answer

A) 1; 1,000 
B) 0; 10,000 
C) 100; 10,000 
D) 100; 1,000 
A) 1; 1,000 
B) 0; 10,000 
C) 100; 10,000 
D) 100; 1,000

Question 20

Four firms agree to operate as a monopoly and charge the monopoly price of $15 for their product and (jointly)produce the monopoly quantity of 25,000 units. If the competitive price for the product is $8, under the Clayton Act these four firms face treble damages of_______ .

Accepted Answer

A) $525,000 
B) $175,000 
C) $3,000,000 
D) $1,000,000 
A) $525,000 
B) $175,000 
C) $3,000,000 
D) $1,000,000

All of the following are examples of restraints of trade except which one?

In the United States, antitrust law focuses primarily on all of the following except which one?

The legality of which of the following actions would be determined using the rule- of- reason?

If a local dairy farm sells its ice cream to a distributor and contractually restricts the distributor from reselling the ice cream outside of the south east, this is an example of _______

If a grocery store offers a five percent discount to senior citizens, this is an example of and is_______ .

Four firms agree to operate as a monopoly and charge the monopoly price of $10 for their product and (jointly)produce the monopoly quantity of 50,000 units. If the competitive price for the product is $6, under the Clayton Act these four firms face treble damages of_______ .

All of the following actions are potential rule- of- reason violations except which one?

Each member of the European Union (EU)has its own national competition laws in addition to the EU competition laws.

Business practices affected by the Clayton Act fall into each of these categories except which one?

The closer a market's Herfindahl- Hirschman Index (HHI)is to the_ less competitive the market, which means there are_ firms in the market.

If two firms located in the United States sell their products in the United States and in the European Union, the possible merger of the two firms could not be examined by the European Union competition authorities.

Sail Away is competing in the sailboat market with Best Sails. Sail Away drops its price below its cost and, in doing so, drives Best Sails out of the market. Once Sail Away is a monopoly, they raise their price and enjoy economic profit. This is an example of .

In the European Union, resale price maintenance is generally illegal is the selling firm has more than a __ percent market share of the product being sold or the buying firm makes more than a _percent market share of the product purchases.

The European Union can impose fines of up to _____percent of the guilty firm;s worldwide total revenue.

If a pre- merger Herfindahl- Hirschman Index (HHI)is less than ______, the merger is unlikely to be challenged.

If Happy Campers, Campers R Us, and Happy Trails each have a market share of 22 percent, according to Chinese law, Happy Campers __ be considered a dominant firm because the total market share across the three firms is _percent.

All of the following are required to make a tying arrangement vulnerable to antitrust prosecution except which one?

Section 2 of the Sherman Act prohibits ________.

The minimum value of the Herfindahl- Hirschman Index (HHI)is_ and the maximum value is_ .

Four firms agree to operate as a monopoly and charge the monopoly price of $15 for their product and (jointly)produce the monopoly quantity of 25,000 units. If the competitive price for the product is $8, under the Clayton Act these four firms face treble damages of_______ .

Managerial Economics and Decision Making

Demand and Supply

Measuring and Using Demand

Production and Costs

Perfect Competition

Monopoly and Monopolistic Competition

Cartels and Oligopoly

Game Theory and Oligopoly

Advanced Pricing Decisions

Decisions About Vertical Integration and Distribution

Decisions About Production, Products, and Location

Marketing Decisions: Advertising and Promotion

Business Decisions Under Uncertainty

Managerial Decisions About Information

Using Present Value to Make Multi-Period Managerial Decisions

Filters

Exam 9: A Managers Guide to Antitrust Policy

All of the following are examples of restraints of trade except which one?

In the United States, antitrust law focuses primarily on all of the following except which one?

The legality of which of the following actions would be determined using the rule- of- reason?

If a local dairy farm sells its ice cream to a distributor and contractually restricts the distributor from reselling the ice cream outside of the south east, this is an example of _______

If a grocery store offers a five percent discount to senior citizens, this is an example of and is_______ .

Four firms agree to operate as a monopoly and charge the monopoly price of $10 for their product and (jointly)produce the monopoly quantity of 50,000 units. If the competitive price for the product is $6, under the Clayton Act these four firms face treble damages of_______ .

All of the following actions are potential rule- of- reason violations except which one?

Each member of the European Union (EU)has its own national competition laws in addition to the EU competition laws.

Business practices affected by the Clayton Act fall into each of these categories except which one?

The closer a market's Herfindahl- Hirschman Index (HHI)is to the_____ less competitive the market, which means there are_____ firms in the market.

If two firms located in the United States sell their products in the United States and in the European Union, the possible merger of the two firms could not be examined by the European Union competition authorities.

Sail Away is competing in the sailboat market with Best Sails. Sail Away drops its price below its cost and, in doing so, drives Best Sails out of the market. Once Sail Away is a monopoly, they raise their price and enjoy economic profit. This is an example of .

In the European Union, resale price maintenance is generally illegal is the selling firm has more than a ______ percent market share of the product being sold or the buying firm makes more than a _____percent market share of the product purchases.

The European Union can impose fines of up to _____percent of the guilty firm;s worldwide total revenue.

If a pre- merger Herfindahl- Hirschman Index (HHI)is less than ______, the merger is unlikely to be challenged.

If Happy Campers, Campers R Us, and Happy Trails each have a market share of 22 percent, according to Chinese law, Happy Campers ______ be considered a dominant firm because the total market share across the three firms is _____percent.

All of the following are required to make a tying arrangement vulnerable to antitrust prosecution except which one?

Section 2 of the Sherman Act prohibits ________.

The minimum value of the Herfindahl- Hirschman Index (HHI)is_____ and the maximum value is_____ .

Four firms agree to operate as a monopoly and charge the monopoly price of $15 for their product and (jointly)produce the monopoly quantity of 25,000 units. If the competitive price for the product is $8, under the Clayton Act these four firms face treble damages of_______ .

Managerial Economics and Decision Making

Demand and Supply

Measuring and Using Demand

Production and Costs

Perfect Competition

Monopoly and Monopolistic Competition

Cartels and Oligopoly

Game Theory and Oligopoly

Advanced Pricing Decisions

Decisions About Vertical Integration and Distribution

Decisions About Production, Products, and Location

Marketing Decisions: Advertising and Promotion

Business Decisions Under Uncertainty

Managerial Decisions About Information

Using Present Value to Make Multi-Period Managerial Decisions

Filters

The closer a market's Herfindahl- Hirschman Index (HHI)is to the_ less competitive the market, which means there are_ firms in the market.

In the European Union, resale price maintenance is generally illegal is the selling firm has more than a __ percent market share of the product being sold or the buying firm makes more than a _percent market share of the product purchases.

If Happy Campers, Campers R Us, and Happy Trails each have a market share of 22 percent, according to Chinese law, Happy Campers __ be considered a dominant firm because the total market share across the three firms is _percent.

The minimum value of the Herfindahl- Hirschman Index (HHI)is_ and the maximum value is_ .