Exam 21: Antitrust Policy and Regulation

An industry has five firms, each with a market share of 20 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. If two of the firms in the industry seek to merge, this action would most likely be opposed by the government because the Herfindahl index for the industry is

In 2013, Apple was convicted, along with five publishers, including Harper Collins, Penguin, and Macmillan, of which antitrust violation?

The two alternative ways of promoting better outcomes when a natural monopoly exists are

One good example of a government agency involved mainly in social regulation is the Food and Drug Administration.

Tying agreements

All price discrimination is deemed illegal in antitrust legislation.

Suppose the courts declare that XYZ Corporation violated the antitrust laws and as a result ABC Corporation lost $100 million of profits. XYZ Corporation will have to pay ABC Corporation a monetary award of

Which of the following amended the Clayton Act's prohibition against mergers that substantially lessen competition?

An industry has a single firm and is found to have violated antitrust laws. The government breaks it up into two firms that will share the market equally. The Herfindahl index for this industry would change from

A merger between an automobile manufacturer and a maker of automobile tires is an example of a

The basic issue in the DuPont cellophane case was

The so-called rule of reason, based on the 1920 U.S. Steel case, stipulates that a merger of two firms in an industry is

Suppose that two firms in an industry that has a Herfindahl index of 1,000 announce a merger. The U.S. Justice Department concludes the merger will boost the index to 1,050. The antitrust authorities will most likely

How is price discrimination treated under antitrust laws?

Conspiracies to fix prices are

The Sherman Act was designed to

Which one of the following is concerned with social regulation?

In 1994, the U.S. Department of Justice stopped which of the following practices?

Which one of the following acts declared "every contract, combination . . . or conspiracy, in restraint of trade or commerce among the several states . . . to be illegal"?

Strict enforcement of antitrust laws will generally complement the economic objective of encouraging new technologies that require large amounts of capital investment.