Exam 21: Antitrust Policy and Regulation

The U.S. Justice Department, the Federal Trade Commission, state attorneys general, and injured private parties can independently file charges against firms under the Sherman Act.

If the government regulates a natural monopoly and sets a "fair return" pricing policy, then the regulated firm will have greater incentive to improve its operating efficiency.

In the 1982 AT&T antitrust case, the resolution was an out-of-court settlement involving a

Government regulation of firms' prices or "rates" in selected industries is the focus of

Tying agreements are contracts by which retailers agree to charge the prices that manufacturers set on branded goods.

Which of the following is most likely to increase the Herfindahl index of a particular industry?

In which of the following cases did the final court decision result in a breakup of the firm into competing businesses?

Which of the following is not a major criticism of social regulation?

Suppose the transportation industry has been regulated for many years. Government now proposes to deregulate the industry, only to find that firms in the industry oppose this action. This is consistent with the

The Consumer Product Safety Commission engages in social regulation, rather than industrial regulation.

(Last Word) In 2015, Google was indicted by European Union antitrust officials for

Laws and government actions designed to prevent monopoly and to promote competition are the focus of

Suppose that two firms in an industry with a Herfindahl index of 5,000 announce a merger. The U.S. Justice Department concludes the merger will boost the index to 5,500. The antitrust authorities will most likely

A merger between McDonald's and Burger King would be an example of a

Critics of industrial regulation say that such regulation

Which of the following beliefs is not strongly espoused by the "laissez-faire perspective" in antitrust policy?

Critics of industrial regulation say that such regulation

The effectiveness of regulation is sometimes criticized because

If the market is defined more narrowly to include only a more restricted range of products, then the Herfindahl index will

Proposed ergonomics regulations are an example of industrial regulation (rather than social regulation).