Exam 27: Regulation and Antitrust Policy in a Globalized Economy

Government policy that attempts to prevent collusion among the sellers of a product and attempts to prevent restraint of trade is known as

A theory of regulatory behavior, which states that regulators must take into account the preferences of legislators, producers, and consumers, is the

Which of the following refers to the capture hypothesis of regulation?

Another name for the "Chain Store Act" is

The statement "Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce . . ." is found in the

-Use the above figure. If this monopolist was not regulated, the profit-maximizing quantity and price would be

The hypothesis that regulators eventually are controlled by the regulated firms and their special interests is the

According to the ________ theory of regulation, regulators must take into account the preferences of legislators, consumers, and producers.

A potential benefit that comes from social regulations would be

The goals of rate regulation have included the prevention of

What is the difference between product versioning and product bundling? Which of these two business practices have antitrust authorities been more likely to regard to be the form of price discrimination called tie-in sales? Why?

-Refer to the above figure. Regulators cannot force natural monopolies to operate in the long run at a loss. Therefore, they usually require the firms to charge a price equal to

In some cases, social regulation may alter individuals' behavior. For example, there is evidence to indicate that as more automobile safety regulations have been introduced, more individuals have begun to drive recklessly. This phenomenon is known as

The difference between cost-of-service regulation and rate-of-return regulation is that

-In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would produce

Which of the following federal agencies is NOT engaged in social regulation?

Which of the following organizations is exempt from prosecution under the Sherman Antitrust Act (1890)?

Which of the following federal agencies is NOT engaged in economic regulation?

Which of the following mergers would most likely be challenged by the Federal Trade Commission?

This agency is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights.