Question 1

What is a merger?

Accepted Answer

A merger is a proces

Question 2

The Clayton Act was passed in order to

Accepted Answer

A)  declare that the telephone industry is a natural monopoly. 
B)  strengthen the Sherman Act. 
C)  change the focus of antitrust law from conduct to structure. 
D)  all of the above 
A)  declare that the telephone industry is a natural monopoly. 
B)  strengthen the Sherman Act. 
C)  change the focus of antitrust law from conduct to structure. 
D)  all of the above

Question 3

Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s).
-Recall the Application.Which of the following is a barrier to entry in the satellite radio industry?

Accepted Answer

A)  high fixed costs 
B)  too many subscribers 
C)  high monthly charges to consumers 
D)  too much competition 
A)  high fixed costs 
B)  too many subscribers 
C)  high monthly charges to consumers 
D)  too much competition

Question 4

-Refer to Figure 13.2.If the government sought to regulate the firm and allowed it to earn only zero economic profit,the government should set

Accepted Answer

A)  P = MC. 
B)  P = ATC. 
C)  MR = MC. 
D)  MR = ATC. 
A)  P = MC. 
B)  P = ATC. 
C)  MR = MC. 
D)  MR = ATC.

Question 5

Describe the Clayton Act.

Accepted Answer

The Clayton Act strengthened the Sherman

Question 6

Describe the Wonder Bread case.

Accepted Answer

Interstate Bakeries wanted to purchase C

Question 7

The Hart-Scott-Rodino Act

Accepted Answer

A)  created the Federal Trade Commission. 
B)  was passed by Congress in 1914. 
C)  extended antitrust legislation to proprietorships and partnerships. 
D)  outlawed price discrimination. 
A)  created the Federal Trade Commission. 
B)  was passed by Congress in 1914. 
C)  extended antitrust legislation to proprietorships and partnerships. 
D)  outlawed price discrimination.

Question 8

Which of the following is NOT an antitrust policy used by the government?

Accepted Answer

A)  regulating business practices 
B)  blocking mergers 
C)  arranging a group of trustees 
D)  breaking up monopolies 
A)  regulating business practices 
B)  blocking mergers 
C)  arranging a group of trustees 
D)  breaking up monopolies

Question 9

An average-cost pricing policy allows natural monopolies to earn positive economic profits.

Accepted Answer

A) True 
 B)False

Question 10

A natural monopoly occurs when

Accepted Answer

A)  the scale economies in production are so large that only a single firm can survive. 
B)  there are firms joining together to limit output and raise prices. 
C)  the government intervenes by putting barriers such as licenses or certifications. 
D)  there are patents. 
A)  the scale economies in production are so large that only a single firm can survive. 
B)  there are firms joining together to limit output and raise prices. 
C)  the government intervenes by putting barriers such as licenses or certifications. 
D)  there are patents.

Question 11

A trust is

Accepted Answer

A)  a cartel. 
B)  legal under the Sherman Act. 
C)  an arrangement in which the owners of several companies transfer their decision-making powers to a group of trustees. 
D)  all of the above 
A)  a cartel. 
B)  legal under the Sherman Act. 
C)  an arrangement in which the owners of several companies transfer their decision-making powers to a group of trustees. 
D)  all of the above

Question 12

The Robinson-Patman Act prohibits the selling of products at "unreasonably low prices" with the intention of increasing competition.

Accepted Answer

A) True 
 B)False

Question 13

Recall the Application about the British experience with private water companies in the nineteenth century to answer the following question(s).
-Recall the Application.What does water privatization show in terms of the distribution of water?

Accepted Answer

A)  The water is a best managed when the government takes control. 
B)  The water is a natural monopoly. 
C)  The water distribution is optimized when the price is fixed. 
D)  none of the above 
A)  The water is a best managed when the government takes control. 
B)  The water is a natural monopoly. 
C)  The water distribution is optimized when the price is fixed. 
D)  none of the above

Question 14

The Federal Trade Commission was concerned that a merger between Continental Baking and Interstate Bakeries would lower bread prices in the bread market.

Accepted Answer

A) True 
 B)False

Question 15

In 1982,the U.S.government allowed AT&T to merge with the Regional Bell Operating Companies.

Accepted Answer

A) True 
 B)False

Question 16

A merger of two firms selling close substitutes may lead to lower prices.

Accepted Answer

A) True 
 B)False

Question 17

What is a trust?

Accepted Answer

A trust is an arrangement in w

Question 18

Describe the Sherman Antitrust Act.

Accepted Answer

The Sherman Antitrust Act made

Question 19

A natural monopoly is characterized by

Accepted Answer

A)  decreasing average total cost and a long-run average cost curve being positively sloped and steep. 
B)  decreasing average total cost and low and increasing marginal cost. 
C)  decreasing average total cost and a long-run average cost curve being negatively sloped and steep. 
D)  increasing average total cost and large and increasing marginal cost. 
A)  decreasing average total cost and a long-run average cost curve being positively sloped and steep. 
B)  decreasing average total cost and low and increasing marginal cost. 
C)  decreasing average total cost and a long-run average cost curve being negatively sloped and steep. 
D)  increasing average total cost and large and increasing marginal cost.

Question 20

Which of the following laws prohibits predatory pricing?

Accepted Answer

A)  the Sherman Act 
B)  the Robinson-Patman Act 
C)  the Clayton Act 
D)  the Federal Trade Commission Act 
A)  the Sherman Act 
B)  the Robinson-Patman Act 
C)  the Clayton Act 
D)  the Federal Trade Commission Act

What is a merger?

The Clayton Act was passed in order to

Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s). -Recall the Application.Which of the following is a barrier to entry in the satellite radio industry?

-Refer to Figure 13.2.If the government sought to regulate the firm and allowed it to earn only zero economic profit,the government should set

Describe the Clayton Act.

Describe the Wonder Bread case.

The Hart-Scott-Rodino Act

Which of the following is NOT an antitrust policy used by the government?

An average-cost pricing policy allows natural monopolies to earn positive economic profits.

A natural monopoly occurs when

A trust is

The Robinson-Patman Act prohibits the selling of products at "unreasonably low prices" with the intention of increasing competition.

Recall the Application about the British experience with private water companies in the nineteenth century to answer the following question(s). -Recall the Application.What does water privatization show in terms of the distribution of water?

The Federal Trade Commission was concerned that a merger between Continental Baking and Interstate Bakeries would lower bread prices in the bread market.

In 1982,the U.S.government allowed AT&T to merge with the Regional Bell Operating Companies.

A merger of two firms selling close substitutes may lead to lower prices.

What is a trust?

Describe the Sherman Antitrust Act.

A natural monopoly is characterized by

Which of the following laws prohibits predatory pricing?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 13: Controlling Market Power: Antitrust and Regulation

What is a merger?

The Clayton Act was passed in order to

Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s). -Recall the Application.Which of the following is a barrier to entry in the satellite radio industry?

-Refer to Figure 13.2.If the government sought to regulate the firm and allowed it to earn only zero economic profit,the government should set

Describe the Clayton Act.

Describe the Wonder Bread case.

The Hart-Scott-Rodino Act

Which of the following is NOT an antitrust policy used by the government?

An average-cost pricing policy allows natural monopolies to earn positive economic profits.

A natural monopoly occurs when

A trust is

The Robinson-Patman Act prohibits the selling of products at "unreasonably low prices" with the intention of increasing competition.

Recall the Application about the British experience with private water companies in the nineteenth century to answer the following question(s). -Recall the Application.What does water privatization show in terms of the distribution of water?

The Federal Trade Commission was concerned that a merger between Continental Baking and Interstate Bakeries would lower bread prices in the bread market.

In 1982,the U.S.government allowed AT&T to merge with the Regional Bell Operating Companies.

A merger of two firms selling close substitutes may lead to lower prices.

What is a trust?

Describe the Sherman Antitrust Act.

A natural monopoly is characterized by

Which of the following laws prohibits predatory pricing?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters