Exam 21: Antitrust Policy and Regulation

The legal cartel theory indicates that in any industry where market demand and the long-run average total cost curve intersect close to the latter's minimum, government regulation is mandatory and desirable.

In which of the following cases was the firm found not guilty of violating the Sherman Act?

An industry has five firms, each with a market share of 20 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. If two of the firms in the industry seek to merge, this action would most likely be opposed by the government because the Herfindahl index for the industry is

In which of the following pairs of antitrust cases did the firms prevail against the antitrust charges leveled against them?

In recent years, the strictest application of antitrust laws has been for

Which of the following findings would be the most likely to lead the U.S. Justice Department to block a corporate merger under terms of the Clayton Act?

A merger between a maker of household detergents and a fast-food chain would be an example of

Where there is natural monopoly, government is most likely to implement

Tying agreements

Suppose that you own a toy store and want to buy 100 talking robots. Your supplier will sell you the robots only if you also agree to buy 200 dolls. This is an illegal practice called

A criticism of social regulation is that it

Which of the following U.S. Supreme Court cases ruled that only monopolies that "unreasonably restrain trade" are violating antitrust laws?

In the U.S. Steel case of 1920, the courts held that

(Consider This) The Consider This box "Of Catfish and Art (and Other Things in Common)" lists examples of recent antitrust cases involving

Per se violations in antitrust law refer to

The decision in the U.S. Steel case

Anticompetitive mergers are illegal under provisions of the Clayton Act (as amended).

The argument that a large firm dominating an industry will not necessarily act like a monopolist, as expressed in the 1920 U.S. Steel case, suggests that the application of antitrust laws should be based on firm

A merger between one firm and another firm that is its supplier is known as a

The main purpose of the antitrust laws is