Question 1

The Celler-Kefauver Act

Accepted Answer

A)  made predatory pricing illegal. 
B)  outlawed asset-purchase mergers that reduce competition. 
C)  created the Federal Trade Commission. 
D)  all of the above 
A)  made predatory pricing illegal. 
B)  outlawed asset-purchase mergers that reduce competition. 
C)  created the Federal Trade Commission. 
D)  all of the above

Question 2

What will happen if a second firm enters a natural monopolistic market?

Accepted Answer

A)  The demand curve of the typical firm will shift to the left. 
B)  The demand curve will lay above the long-run average cost curve. 
C)  The profit will be reduced to zero for both firms. 
D)  It will have no effect on the profit of the first firm. 
A)  The demand curve of the typical firm will shift to the left. 
B)  The demand curve will lay above the long-run average cost curve. 
C)  The profit will be reduced to zero for both firms. 
D)  It will have no effect on the profit of the first firm.

Question 3

The Clayton Act extends antitrust policy to proprietorships and partnerships.

Accepted Answer

A) True 
 B)False

Question 4

Predatory pricing is best exemplified when a firm

Accepted Answer

A)  cuts its prices in order to increase competition in the market. 
B)  exercises its monopoly power by raising price. 
C)  cuts its prices temporarily in order to drive out any competition. 
D)  requires consumers to purchase products together rather than separately. 
A)  cuts its prices in order to increase competition in the market. 
B)  exercises its monopoly power by raising price. 
C)  cuts its prices temporarily in order to drive out any competition. 
D)  requires consumers to purchase products together rather than separately.

Question 5

A trust is an arrangement where the owners of several firms attempt to drive each other out of business by lowering their prices.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following government agencies is responsible for initiating actions against individuals or firms that are suspected of violating antitrust laws?

Accepted Answer

A)  the Federal Trade Commission 
B)  the Consumer Protection Agency 
C)  the Department of Justice 
D)  Both A and C are correct. 
A)  the Federal Trade Commission 
B)  the Consumer Protection Agency 
C)  the Department of Justice 
D)  Both A and C are correct.

Question 7

Which of the following concerning predatory pricing is true?

Accepted Answer

A)  Predatory pricing involves charging different prices to different customers based on their willingness-to-pay. 
B)  Predatory pricing involves raising prices very high so that most consumers are unable to purchase the product, though a few continue to do so, and the firm makes huge profits by having lower production costs. 
C)  Predatory pricing is used to drive competitors out of the market. 
D)  Predatory pricing permanently lowers the price in the market. 
A)  Predatory pricing involves charging different prices to different customers based on their willingness-to-pay. 
B)  Predatory pricing involves raising prices very high so that most consumers are unable to purchase the product, though a few continue to do so, and the firm makes huge profits by having lower production costs. 
C)  Predatory pricing is used to drive competitors out of the market. 
D)  Predatory pricing permanently lowers the price in the market.

Question 8

Which of the following mergers was successfully blocked by the United States government?

Accepted Answer

A)  Interstate Bakeries and Continental Bakery 
B)  Microsoft and Intuit 
C)  Standard Oil and Mobil 
D)  American Tobacco Company and Reynolds 
A)  Interstate Bakeries and Continental Bakery 
B)  Microsoft and Intuit 
C)  Standard Oil and Mobil 
D)  American Tobacco Company and Reynolds

Question 9

-Refer to Figure 13.1.If the government regulates Armstrong Cable so they can earn only zero economic profit,the price would be set at

Accepted Answer

A)  $12.00. 
B)  $12.50. 
C)  $13.00. 
D)  $16.00. 
A)  $12.00. 
B)  $12.50. 
C)  $13.00. 
D)  $16.00.

Question 10

Explain why the government broke up the Standard Oil Trust.

Accepted Answer

The Standard Oil Trust controlled over 9

Question 11

Give an example of a tie-in sale.

Accepted Answer

Student responses will vary,bu

Question 12

Describe the Robinson-Patman Act.

Accepted Answer

The Robinson-Patman Act prohib

Question 13

Predatory pricing occurs when a firm attempts to drive a competitor out of business by selling its product above production cost.

Accepted Answer

A) True 
 B)False

Question 14

-Refer to Figure 13.1.The type of firm pictured is a

Accepted Answer

A)  patent monopoly. 
B)  natural monopoly. 
C)  strategic-resource monopoly. 
D)  government-franchise monopoly. 
A)  patent monopoly. 
B)  natural monopoly. 
C)  strategic-resource monopoly. 
D)  government-franchise monopoly.

Question 15

In a natural monopoly,the government will try to set the price at which the demand curve intersects the monopolist's

Accepted Answer

A)  long-run marginal revenue curve. 
B)  long-run marginal cost curve. 
C)  long-run average total cost curve. 
D)  long-run average fixed cost curve. 
A)  long-run marginal revenue curve. 
B)  long-run marginal cost curve. 
C)  long-run average total cost curve. 
D)  long-run average fixed cost curve.

Question 16

Which of the following industries has experienced a break-up of a large monopoly into smaller competing firms?

Accepted Answer

A)  tobacco 
B)  oil 
C)  telephone 
D)  all of the above 
A)  tobacco 
B)  oil 
C)  telephone 
D)  all of the above

Question 17

The Sherman Act

Accepted Answer

A)  was passed in 1890. 
B)  declared monopoly and trade restraints legal. 
C)  contained clear language. 
D)  all of the above 
A)  was passed in 1890. 
B)  declared monopoly and trade restraints legal. 
C)  contained clear language. 
D)  all of the above

Question 18

The government often deregulates natural monopolies.

Accepted Answer

A) True 
 B)False

Question 19

The Robinson-Patman Act

Accepted Answer

A)  made tie-in sales contracts illegal. 
B)  was the first antitrust legislation passed by Congress. 
C)  created the Federal Trade Commission. 
D)  made predatory pricing illegal. 
A)  made tie-in sales contracts illegal. 
B)  was the first antitrust legislation passed by Congress. 
C)  created the Federal Trade Commission. 
D)  made predatory pricing illegal.

Question 20

The Clayton Act

Accepted Answer

A)  prohibited predatory pricing. 
B)  outlawed tie-in sales contracts. 
C)  extended antitrust legislation to proprietorships and partnerships. 
D)  all of the above 
A)  prohibited predatory pricing. 
B)  outlawed tie-in sales contracts. 
C)  extended antitrust legislation to proprietorships and partnerships. 
D)  all of the above

The Celler-Kefauver Act

What will happen if a second firm enters a natural monopolistic market?

The Clayton Act extends antitrust policy to proprietorships and partnerships.

Predatory pricing is best exemplified when a firm

A trust is an arrangement where the owners of several firms attempt to drive each other out of business by lowering their prices.

Which of the following government agencies is responsible for initiating actions against individuals or firms that are suspected of violating antitrust laws?

Which of the following concerning predatory pricing is true?

Which of the following mergers was successfully blocked by the United States government?

-Refer to Figure 13.1.If the government regulates Armstrong Cable so they can earn only zero economic profit,the price would be set at

Explain why the government broke up the Standard Oil Trust.

Give an example of a tie-in sale.

Describe the Robinson-Patman Act.

Predatory pricing occurs when a firm attempts to drive a competitor out of business by selling its product above production cost.

-Refer to Figure 13.1.The type of firm pictured is a

In a natural monopoly,the government will try to set the price at which the demand curve intersects the monopolist's

Which of the following industries has experienced a break-up of a large monopoly into smaller competing firms?

The Sherman Act

The government often deregulates natural monopolies.

The Robinson-Patman Act

The Clayton Act

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

The Celler-Kefauver Act

What will happen if a second firm enters a natural monopolistic market?

The Clayton Act extends antitrust policy to proprietorships and partnerships.

Predatory pricing is best exemplified when a firm

A trust is an arrangement where the owners of several firms attempt to drive each other out of business by lowering their prices.

Which of the following government agencies is responsible for initiating actions against individuals or firms that are suspected of violating antitrust laws?

Which of the following concerning predatory pricing is true?

Which of the following mergers was successfully blocked by the United States government?

-Refer to Figure 13.1.If the government regulates Armstrong Cable so they can earn only zero economic profit,the price would be set at

Explain why the government broke up the Standard Oil Trust.

Give an example of a tie-in sale.

Describe the Robinson-Patman Act.

Predatory pricing occurs when a firm attempts to drive a competitor out of business by selling its product above production cost.

-Refer to Figure 13.1.The type of firm pictured is a

In a natural monopoly,the government will try to set the price at which the demand curve intersects the monopolist's

Which of the following industries has experienced a break-up of a large monopoly into smaller competing firms?

The Sherman Act

The government often deregulates natural monopolies.

The Robinson-Patman Act

The Clayton Act

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