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WorksheetsAntitrust Policy & Regulation Section 1 Antitrust Laws
Total questions: 15
Worksheet time: 8mins
The four particular pieces of federal legislation that constitute the basic law relating to monopoly structure and conduct.
Industrial regulation, Social regulation, Legal Cartel Theory of Regulation, and Public Interest Theory of Regulation
Sherman Act, Clayton Act, Federal Trade Commission Act, and Celler-Kefauver Act
Standard Oil case, U.S. Steel case, Alcoa case, and Dupont Cellophane case
Horizontal merger, Vertical merger, Diagonal merger, and Conglomerate merger
Evidence of this by even small firms will bring antitrust action, as well as other collusive activities. Also known as per se violations
Price-Fixing
Tying contracts
Conglomerate mergers
Price discrimination
_________was found guilty in 2002 of violating the Sherman Act by taking several unlawful actions designed to maintain its monopoly for personal computers
Intel
Apple
IBM
Microsoft
___________created the five-member Federal Trade Commission (FTC), which has joint federal responsibility with the U.S. Justice Department for enforcing the antitrust laws.
Clayton Act of 1914
Wheeler-Lea Act of 1938
Sherman Act of 1890
None of the above
__________ is a merger between two competitors that sell similar products in the same geographic market
Conglomerate merger
Horizontal merger
Tying contract
Natural monopoly
Section 3 of the Clayton Act prohibits tying contracts which are?
When a producer requires that a buyer purchase another of its products as a condition for obtaining a desired product.
A business deal between two companies that merge them together.
A merger between two competitors that sell similar products in the same geographic market.
Merger between two firms at different stages of the production process.
What is a vertical merger?
A combination of firms in different industries or firms in different geographic locations.
A merger that combines two competitors that produce similar products
A merger between two companies that produce similar product during different stages of the production process
Antitrust policy are antitrust laws that prevent competition and economic efficiency.
True
False
The rule of reason states that the size and possession of monopoly power are not by themselves illegal
True
False
What is a conglomerate merger?
A merger that combines two competitors that produce similar products.
A combination of firms in different industries or firms in different geographic locations.
A merger between two companies that produce similar product during different stages of the production process
Does pineapple belong on pizza?
Yes, but only on Hawaiian.
I’m going to puke
Absolutely!
Skip the pizza just give me the pineapple
Creative destruction is a process in which monopolies are eventually destroyed by technology and products.
True
False
________say highly concentrated industries will always be monopolists.
Behavioralists
Industrialists
Structuralists
Naturalists
What does p=mc represent?
Profit = marginal cost
Price = marginal cost
Profit = monopoly companies
Price = money changes
What is a regulatory agency?
An agency that was established to reduce technology within a company
An agency trying to make a company smaller
They control economic behavior for natural monopolies.
Controls economic behavior for formed monopolies
