Question 1

Typically, antitrust agencies closely examine vertical mergers and horizontal mergers receive much less scrutiny.

Accepted Answer

A) True 
 B)False

Question 2

The Sherman Act was passed in 1914.

Accepted Answer

A) True 
 B)False

Question 3

Exclusive dealing contracts and requirements contracts are illegal per se.

Accepted Answer

A) True 
 B)False

Question 4

In reference to worldwide competition laws, each of the following are fundamentally prohibited or highly suspicious among regulators across almost all countries except which one?

Accepted Answer

A) dominant firms 
B) creation of cartels 
C) charging unfairly high prices 
D) monopolies 
A) dominant firms 
B) creation of cartels 
C) charging unfairly high prices 
D) monopolies

Question 5

A horizontal merger can lead to all of the following except which one?

Accepted Answer

A) a decrease in the total surplus 
B) a monopoly 
C) a perfectly competitive market 
D) a deadweight loss 
A) a decrease in the total surplus 
B) a monopoly 
C) a perfectly competitive market 
D) a deadweight loss

Question 6

If a dominant firm_____ charged a very high price for its product, the firm ______ face scrutiny by the European Union competitive laws and face scrutiny by the United States antitrust agencies.

Accepted Answer

A) would not necessarily; would 
B) would not necessarily; would not necessarily 
C) would; would 
D) would; would not necessarily 
A) would not necessarily; would 
B) would not necessarily; would not necessarily 
C) would; would 
D) would; would not necessarily

Question 7

If two fast food pizza companies are in an agreement, this is an example of a_______ agreement.

Accepted Answer

A) horizontal 
B) vertical 
C) leftward 
D) rightward 
A) horizontal 
B) vertical 
C) leftward 
D) rightward

Question 8

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 25,000 units. If the competitive price for the product is $10, under the Clayton Act these three firms face treble damages of_______ .

Accepted Answer

A) $1,000,000 
B) $750,000 
C) $2,250,000 
D) $3,000,000 
A) $1,000,000 
B) $750,000 
C) $2,250,000 
D) $3,000,000

Question 9

Conditional sales all involve the_______ relationship between_______ .

Accepted Answer

A) horizontal; two buyers 
B) horizontal; a seller and a buyer 
C) vertical; two sellers 
D) vertical; a seller and a buyer 
A) horizontal; two buyers 
B) horizontal; a seller and a buyer 
C) vertical; two sellers 
D) vertical; a seller and a buyer

Question 10

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

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 set prices 
C) an agreement with a competitor firm to not sell to a particular customer 
D) an agreement with a competitor firm to adjust output levels 
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 set prices 
C) an agreement with a competitor firm to not sell to a particular customer 
D) an agreement with a competitor firm to adjust output levels

Question 11

The manager of Healthy Bars should avoid all of the following topics except which one when speaking to managers of Healthy Snacks, a competitor firm?

Accepted Answer

A) the planned production amounts of Healthy Crunch, another competitor firm 
B) Healthy Bars planned production amounts 
C) Healthy Bars pricing policy 
D) a news report announcing the benefits of healthy eating 
A) the planned production amounts of Healthy Crunch, another competitor firm 
B) Healthy Bars planned production amounts 
C) Healthy Bars pricing policy 
D) a news report announcing the benefits of healthy eating

Question 12

To date, the longest prison sentence for violating the Sherman Act has been ________ years.

Accepted Answer

A) ten 
B) eight 
C) two 
D) five 
A) ten 
B) eight 
C) two 
D) five

Question 13

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) a tying sale with a customer 
C) an exclusive dealings contract with a customer 
D) an agreement with a competitor firm to adjust output levels 
A) an agreement with a customer about the resale price the customer will charge for the product 
B) a tying sale with a customer 
C) an exclusive dealings contract with a customer 
D) an agreement with a competitor firm to adjust output levels

Question 14

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 0.01. 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.

Accepted Answer

A) include; do not 
B) exclude; do not 
C) exclude; do 
D) include; do 
A) include; do not 
B) exclude; do not 
C) exclude; do 
D) include; do

Question 15

If a horizontal merger between two rival firms reduces competition, all of the following are possible except which one?

Accepted Answer

A) The managers could face personal fines. 
B) The firms could face civil penalties. 
C) The firms could face criminal fines. 
D) The managers could face personal fines, but could not be imprisoned. 
A) The managers could face personal fines. 
B) The firms could face civil penalties. 
C) The firms could face criminal fines. 
D) The managers could face personal fines, but could not be imprisoned.

Typically, antitrust agencies closely examine vertical mergers and horizontal mergers receive much less scrutiny.

The Sherman Act was passed in 1914.

Exclusive dealing contracts and requirements contracts are illegal per se.

In reference to worldwide competition laws, each of the following are fundamentally prohibited or highly suspicious among regulators across almost all countries except which one?

A horizontal merger can lead to all of the following except which one?

If a dominant firm_ charged a very high price for its product, the firm __ face scrutiny by the European Union competitive laws and face scrutiny by the United States antitrust agencies.

If two fast food pizza companies are in an agreement, this is an example of a_______ agreement.

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 25,000 units. If the competitive price for the product is $10, under the Clayton Act these three firms face treble damages of_______ .

Conditional sales all involve the_ relationship between_ .

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

The manager of Healthy Bars should avoid all of the following topics except which one when speaking to managers of Healthy Snacks, a competitor firm?

To date, the longest prison sentence for violating the Sherman Act has been ________ years.

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

If a horizontal merger between two rival firms reduces competition, all of the following are possible except which one?

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

Typically, antitrust agencies closely examine vertical mergers and horizontal mergers receive much less scrutiny.

The Sherman Act was passed in 1914.

Exclusive dealing contracts and requirements contracts are illegal per se.

In reference to worldwide competition laws, each of the following are fundamentally prohibited or highly suspicious among regulators across almost all countries except which one?

A horizontal merger can lead to all of the following except which one?

If a dominant firm_____ charged a very high price for its product, the firm ______ face scrutiny by the European Union competitive laws and face scrutiny by the United States antitrust agencies.

If two fast food pizza companies are in an agreement, this is an example of a_______ agreement.

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 25,000 units. If the competitive price for the product is $10, under the Clayton Act these three firms face treble damages of_______ .

Conditional sales all involve the_______ relationship between_______ .

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

The manager of Healthy Bars should avoid all of the following topics except which one when speaking to managers of Healthy Snacks, a competitor firm?

To date, the longest prison sentence for violating the Sherman Act has been ________ years.

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

If a horizontal merger between two rival firms reduces competition, all of the following are possible except which one?

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

If a dominant firm_ charged a very high price for its product, the firm __ face scrutiny by the European Union competitive laws and face scrutiny by the United States antitrust agencies.

Conditional sales all involve the_ relationship between_ .