Question 1

Today, a common starting point is for US antitrust regulators to use statistical tools and real- world evidence to _______ faced by firms proposing a merger of their respective businesses.

Accepted Answer

A)   define the market and count up total sales
B)   estimate the demand and supply curves
C)   preserve competition in certain local markets
D)   analyze companies and narrowly defined marketsE) None of the above
F) C) and D)

Question 2

A minimum resale price maintenance agreement requires a dealer who buys from a manufacturer _______.

Accepted Answer

A)   to sell for at least a certain minimum price
B)   to avoid engaging in restrictive practices.
C)   to guarantee a certain percentage of market share
D)   to sell for at least a certain maximum priceE) B) and D)
F) C) and D)

Question 3

Because attempting to define a particular market can be difficult and controversial the Federal Trade Commission has begun to look less at market share and more at the data on actual
_______

Accepted Answer

A)   competition in the overall economy
B)   selective anti-competitive industry practices
C)   competition between businesses
D)   market definitionE) A) and B)
F) All of the above

Question 4

City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below.

An unregulated monopoly will produce _______ million therms of natural gas and sell each therm for _______.

Accepted Answer

A)   3; $38
B)   2; $44
C)   38; $3
D)   44; $2E) A) and D)
F) B) and C)

Question 5

What role does the US government play with respect to market competition?

Accepted Answer

A)   policing anticompetitive behavior and prohibiting contracts that restrict competition
B)   preserving competition by regulating price and/or quantity of output
C)   intervening in the price and output decision of businesses
D)   maintaining abundant government-owned firms to ensure consumer friendly pricingE) B) and C)
F) A) and B)

Question 6

The application of current US antitrust law

Accepted Answer

A)   extends its long reach to block mergers that reduce competition.
B)   reaches beyond the subjective judgments of antitrust regulators.
C)   includes a wide arrange of anticompetitive practices.
D)   includes a narrow range of anticompetitive practices.E) B) and C)
F) A) and D)

Question 7

Briefly compare and contrast a corporate merger and a corporate acquisition.

Accepted Answer

A corporate merger involves tw...

Question 8

Briefly discuss the purpose of antitrust laws, including a brief description of how they work. Include a brief explanation of what is meant by the term "regulatory capture".

Accepted Answer

Antitrust laws seek to ensure active com...

Question 9

Briefly discuss a four-firm concentration ratio, including an explanation of what it is used for and how it is calculated.

Accepted Answer

A four-firm concentration ratio is one w...

Question 10

The concept of restrictive practices in the U.S. market economy is _______.

Accepted Answer

A)   set out in law that remains relatively constant
B)   continually evolving
C)   useful and fair
D)   closed to interpretationE) None of the above
F) B) and D)

Question 11

Briefly discuss the role of antitrust authorities with respect to collusion, and identify the particular type of offence that antitrust cases involve.

Accepted Answer

In the U.S., firms are blocked by antit...

Question 12

If the U.S. electricity and the telecommunications industry are deregulated, the challenge that will need to be met will involve

Accepted Answer

A)   injecting competition into industries where the arguments for deregulation are not obvious.
B)   combining competition where possible with regulation where necessary.
C)   focusing on the grid of wires that bring electricity to all categories of consumers.
D)   plans for aiding the concealment of Enron-style antitrust activities.E) B) and D)
F) None of the above

Question 13

Splitting up a the natural monopoly held by a public utility that produces and provides electricity would

Accepted Answer

A)   raise the total cost of production for all and force their profits to zero.
B)   raise the average cost of production and force consumers to pay more.
C)   evolve the structure of costs and demand to make competition less costly.
D)   evolve the structure of costs and demand to make competition more likely.E) A) and B)
F) A) and C)

Question 14

The result of regulatory capture is that government price regulation can often become a way for existing competitors to work together to

Accepted Answer

A)   reduce output.
B)   limit competition.
C)   keep prices high.
D)   all of the above.E) A) and D)
F) A) and B)

Question 15

JustMeInc. is the only provider of high speed internet in Tinytown. The firm charges their customers on an annual basis. Its cost and demand information are given below.

If the government decides to regulate this natural monopoly by forcing them to sell the quantity and price where the market demand curve crosses average cost, then the market price would be

Accepted Answer

A)   $233.33
B)   $210
C)   $180
D)   $150E) A) and C)
F) A) and D)

Question 16

The US Federal Trade Commission justifies their record of approval of most mergers by asserting that, even though competition is diminished by consolidating two firms into one, mergers actually benefit

Accepted Answer

A)   competition and consumers by forcing firms to lower consumer pricing.
B)   competition and consumers in the short-run.
C)   competition and consumers by allowing firms to operate more efficiently.
D)   competition and consumers at the outset.E) A) and B)
F) A) and C)

Exam 11: Monopoly and Antitrust Policy

Correct Answer
verified

The concept of restrictive practices in the U.S. market economy is _______.

Correct Answer
verified

Briefly discuss the purpose of antitrust laws, including a brief description of how they work. Include a brief explanation of what is meant by the term "regulatory capture".

Correct Answer
verified
Antitrust laws seek to ensure active com...
View Answer

What role does the US government play with respect to market competition?

Correct Answer
verified

Because attempting to define a particular market can be difficult and controversial the Federal Trade Commission has begun to look less at market share and more at the data on actual _______

Correct Answer
verified

A minimum resale price maintenance agreement requires a dealer who buys from a manufacturer _______.

Correct Answer
verified

Today, a common starting point is for US antitrust regulators to use statistical tools and real- world evidence to _______ faced by firms proposing a merger of their respective businesses.

Correct Answer
verified

If the U.S. electricity and the telecommunications industry are deregulated, the challenge that will need to be met will involve

Correct Answer
verified

Briefly discuss a four-firm concentration ratio, including an explanation of what it is used for and how it is calculated.

Correct Answer
verified
A four-firm concentration ratio is one w...
View Answer

The application of current US antitrust law

Correct Answer
verified

Briefly compare and contrast a corporate merger and a corporate acquisition.

Correct Answer
verified
A corporate merger involves tw...
View Answer

The US Federal Trade Commission justifies their record of approval of most mergers by asserting that, even though competition is diminished by consolidating two firms into one, mergers actually benefit

Correct Answer
verified

City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below. An unregulated monopoly will produce _ million therms of natural gas and sell each therm for _.

Correct Answer
verified

Splitting up a the natural monopoly held by a public utility that produces and provides electricity would

Correct Answer
verified

The result of regulatory capture is that government price regulation can often become a way for existing competitors to work together to

Correct Answer
verified

Briefly discuss the role of antitrust authorities with respect to collusion, and identify the particular type of offence that antitrust cases involve.

Correct Answer
verified
In the U.S., firms are blocked by antit...
View Answer

Exam 11: Monopoly and Antitrust Policy

Correct AnswerverifiedShow Answer

The concept of restrictive practices in the U.S. market economy is _______.

Correct AnswerverifiedShow Answer

Briefly discuss the purpose of antitrust laws, including a brief description of how they work. Include a brief explanation of what is meant by the term "regulatory capture".

Correct AnswerverifiedAntitrust laws seek to ensure active com...View AnswerShow Answer

What role does the US government play with respect to market competition?

Correct AnswerverifiedShow Answer

Because attempting to define a particular market can be difficult and controversial the Federal Trade Commission has begun to look less at market share and more at the data on actual _______

Correct AnswerverifiedShow Answer

A minimum resale price maintenance agreement requires a dealer who buys from a manufacturer _______.

Correct AnswerverifiedShow Answer

Today, a common starting point is for US antitrust regulators to use statistical tools and real- world evidence to _______ faced by firms proposing a merger of their respective businesses.

Correct AnswerverifiedShow Answer

If the U.S. electricity and the telecommunications industry are deregulated, the challenge that will need to be met will involve

Correct AnswerverifiedShow Answer

Briefly discuss a four-firm concentration ratio, including an explanation of what it is used for and how it is calculated.

Correct AnswerverifiedA four-firm concentration ratio is one w...View AnswerShow Answer

The application of current US antitrust law

Correct AnswerverifiedShow Answer

Briefly compare and contrast a corporate merger and a corporate acquisition.

Correct AnswerverifiedA corporate merger involves tw...View AnswerShow Answer

The US Federal Trade Commission justifies their record of approval of most mergers by asserting that, even though competition is diminished by consolidating two firms into one, mergers actually benefit

Correct AnswerverifiedShow Answer

City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below. An unregulated monopoly will produce _______ million therms of natural gas and sell each therm for _______.

Correct AnswerverifiedShow Answer

Splitting up a the natural monopoly held by a public utility that produces and provides electricity would

Correct AnswerverifiedShow Answer

The result of regulatory capture is that government price regulation can often become a way for existing competitors to work together to

Correct AnswerverifiedShow Answer

Briefly discuss the role of antitrust authorities with respect to collusion, and identify the particular type of offence that antitrust cases involve.

Correct Answerverified In the U.S., firms are blocked by antit...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Antitrust laws seek to ensure active com...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A four-firm concentration ratio is one w...
View Answer

Correct Answer
verified

Correct Answer
verified
A corporate merger involves tw...
View Answer

Correct Answer
verified

City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below. An unregulated monopoly will produce _ million therms of natural gas and sell each therm for _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In the U.S., firms are blocked by antit...
View Answer