Exam 13: Antitrust and Regulation

Firms that place their assets in the custody of a board of trustees is called a(n):

Which of the following lists the historical regulation of industries in chronological order?

The per se rule refers to the interpretation of the courts that dominant firms should be broken up because of their:

Which of the following imposed regulation on its industry?

The primary purpose of antitrust legislation is to:

Which act of Congress declared tying contracts, exclusive dealing, and price discrimination illegal?

Campbell Soup agrees to sell its brand to a grocery chain only if the chain also agrees to buy a minimum number of cases of its V-8 juice. This is an example of:

According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?

The purchase of the assets of one steelmaker by another steelmaker might be a violation of the:

When consumers in a market become fully informed of negative information about the product, we can expect the

Which of the following statements is true ?

Paul Bergen and Virginia Clancy each own a 100-acre soybean farm in Soyburg, Illinois. Together they grow 1/1000th of 1 percent of the nation's soybeans. When they merge, it will:

Ersatz Kreme will sell its filling to Hunky Donuts only if Hunky Donuts agrees not to buy filling from other suppliers. This is an example of:

The argument in favor of regulation for natural monopolies, externalities, and cases of imperfect information is:

Although U.S. Steel controlled nearly 75 percent of the domestic iron and steel industry, in 1920 the Supreme Court ruled that the firm was not in violation of the Sherman Antitrust Act because

Regulatory commissions may focus on establishing a "fair-return" price to be charged by a monopolist. Under this policy, the monopolist would earn:

You are the mayor of your home town, and one day you arrive at city hall to find angry voters demonstrating against you. They are mad because your office created a garbage-collection monopoly by awarding only one company a permit to collect garbage in your town. The voters claim that the company is overcharging and providing poor service. They want you to do something that will lower rates and improve service. You call your staff economist, who presents evidence that there are substantial economies of scale to garbage collection. What are your options if you are interested in efficiency?

For which pair of firms would a merger be horizontal?

Exhibit 13-3 A monopolist In Exhibit 13-3, if this is an unregulated monopoly firm, the price and output which would maximize profits are:

Martha lives near a paper mill. If she is concerned about the effects of the air pollution from the plant, she should contact which regulatory agency?