Exam 9: A Managers Guide to Antitrust Policy

Which of the following actions should be discussed with an attorney before undertaking as the action could be considered legal?

An antitrust agency is identifying the product market for Good X and determines that Good X and Good Y have a cross- price elasticity of 15.2. As a result of the cross- price elasticity, the antitrust agency is likely to _____Good Y from Good X's product market as the products ______ compete as close substitutes.

Which of the following actions should be discussed with an attorney before undertaking as the action could be considered legal?

If a large hardware chain offers a ten percent discount to those currently serving in the military and veterans, this is an example of ________ and is_______ .

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

If Happy Cows contractually requires distributors who purchase Happy Cows' milk to also purchase Happy Cows' cream, this is an example of_____ .

The European Union competition laws strongly support the free- market system by allowing firms to charge a high price or buy at a low price regardless of the market structure.

If a cigarette manufacturer sells its cigarettes to a distributor and contractually restricts the distributor from reselling the cigarettes outside the state of New York, this is an example of _____.

If there are four firms in a market and each has an equal market share, the Herfindahl- Hirschman Index (HHI)is_____ .

Healthy Crunch contractually requires distributors who purchase Healthy Crunch's snack bars to also purchase Healthy Crunch's breakfast cereal. The legality of the practice will be evaluated under Section _____of the Clayton Act.

If a horizontal merger lowers the cost of production and increases the total surplus in the market, which of the following is also likely to have occurred?

To avoid a rule- of- reason violation, the manager of a designer handbag firm should not undertake which of these actions without first speaking to an attorney?

Unlike the European Union competition laws, Chinese Anti- monopoly Law considers which of the following?

Conditional sales are always illegal per se under the Clayton Act.

If a software company charges different prices for its product in different areas of the United States, under United States antitrust laws, this agreement is illegal per se.

If three residential cleaning service companies agree to reduce the number of homes they clean each month in an effort to raise the price for the service, this is an example of_______ .

Resale price maintenance can prevent showrooming.

Even if a firm is found guilty of price fixing, after paying all imposed fines, it is still possible for the firm to earn positive economic profit from the price fixing scheme.

If three paper product companies are in an agreement, this is an example of a _______agreement.

As a general rule, antitrust authorities refer to any firm with a market share above_______ percent as a monopoly even though it is technically a dominant firm.