Exam 9: A Managers Guide to Antitrust Policy

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

Using the SSNIP test, if two firms merge and the result is that the new, merged firm can raise the price of its product by _____percent for _____year(s), then the product the merged firm produces represents a market.

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

According to Chinese law, to be a dominant firm, can be all of the following except which one?

Price fixing and market division are illegal per se in the United States and effectively illegal per se in the European Union.

If a firm located outside of China violates China's Anti- monopoly Law, China prosecute the firm______ .

For individuals, the maximum fine for a Sherman Act violation is_______ million and the maximum prison sentence is ________ years.

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

Three firms agree to operate as a monopoly and charge the monopoly price of $40 for their product and (jointly)produce the monopoly quantity of 50,000 units. If the competitive price for the product is $35, under the Clayton Act these three firms face treble damages of _______.

When considering the legality of a horizontal merger, U.S. antitrust agencies tend to emphasize the importance of consumer surplus rather than total surplus.

If three pizza delivery companies agree that one company will service only the rural areas of a state, one only suburban areas, and the one only the urban areas, this is an example of_______ .

If four hair products companies agree to decrease the output of their styling products and raise the price of their styling products to $18, this is an example of _______.

Resale price maintenance is a kind of _______restraint and it_______ legal.

Big Roads and Big Pavers are two competing road construction firms. The managers of these two firms should never undertake all of the following actions except which one?

If a company offers a discounted price to college students, the legality of the practice will be evaluated under Section_______ of the Clayton Act.

The Clayton Act was the second major piece of antitrust legislation.

All of the following are examples of conditional sales except which one?

If Happy Campers has a market share of 55 percent and Campers R Us has a market share of 15 percent, according to Chinese law, Happy Campers Campers R Us ________be considered a dominant firm.

If laundry detergent companies are in an agreement, this is an example of a_______ agreement.

If a firm is found guilty of violating any of the European Union competition laws, courts _____impose fines and _____sentence managers who have violated the law to jail.