Chat with AIExam 11: Antitrust Law-Monopolies and Mergers
List the potential benefits and hazards of mergers.
(29) 
VerifiedMergers often have clearly beneficial effects.Some of the potential virtues of mergers include:
(1) Mergers permit the replacement of inefficient management,and the threat of replacement disciplines managers to be more productive.
(2) Mergers may permit stronger competition with previously larger rivals.
(3) Mergers may improve credit access.
(4) Mergers may produce efficiencies and economies of scale.
(5) Mergers frequently offer a pool of liquid assets for use in expansion and in innovation.
(6) Very often,mergers offer tax advantages.
(7) Growth by merger is often less expensive than internal growth.
(8) Mergers help to satisfy the personal ambitions and needs of management.
In addition to the frequent financial failures,other merger hazards are:
(1) Too much power is being concentrated in too few hands.
(2) A particular merger,while not threatening in and of itself,may trigger a merger movement among industry competitors.
(3) Higher market concentration may lead to higher prices.
(4) Innovation may be harmed.
(5) Some companies are so large that they can significantly shape political affairs.
(6) Some companies may have become so large that we cannot allow them to fail.
A merger of two wine producers in the same geographic market would be an example of a _____ merger.
(47) VerifiedD
Which of the following is a part of the general legal test for monopolization?
(36) VerifiedD
The smaller the Herfindahl-Hirschman Index (HHI),the more concentrated the market.
(37) A merger involves the union of two or more enterprises wherein the property of all is transferred to the one remaining firm.
(37) Explain the differences among horizontal,vertical,and conglomerate mergers.
(39) Conditions where the market will support only one firm or where large economies of scale exist are termed _____.
(44) Which of the following acts offers the primary legislative oversight: "That no person engaged in commerce shall acquire the whole or any part of the stock or the assets of another person engaged also in commerce where the effect of such acquisition may be substantially to lessen competition,or to tend to create a monopoly"?
(38) United States antitrust laws cannot be applied to foreign corporations doing business in the United States.
(42) Feety Shoes,a footwear manufacturing company,acquires Skeez Leathers,a leather manufacturing company.This would be an example of a _____ merger.
(42) The ability of a seller to profitably maintain prices above competitive levels for a significant period of time is called _____.
(35) The conglomerate category includes all mergers that are neither horizontal nor vertical.
(41) The Sherman Act applies to the conduct of American business abroad when that business has a direct effect on American commerce.
(32) In 2000,Microsoft was deemed to have violated federal antitrust laws by using _____.
(39) A situation in which a firm holds the power to control prices and/or exclude competition in a particular market is called an oligopoly.
(34) 
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