Economics (McConnell), 18th Edition

Chapter 18: Antitrust Policy and Regulation

Key Questions

1. Describe the major provisions of the Sherman and Clayton acts. What government entities are responsible for enforcing those laws? Are firms permitted to initiate antitrust suits on their own against other firms?

2. How would you expect antitrust authorities to react to

  1. A proposed merger of Ford and General Motors.
  2. Evidence of secret meetings by contractors to rig bids for highway construction projects.
  3. A proposed merger of a large shoe manufacturer and a chain of retail shoe stores.
  4. A proposed merger of a small life-insurance company and a regional candy manufacturer.
  5. An automobile rental firm that charges higher rates for last-minute rentals than for rentals reserved weeks in advance.

3. What types of industries, if any, should be subjected to industrial regulation? What specific problems does industrial regulation entail?

4. How does social regulation differ from industrial regulation? What types of benefits and costs are associated with social regulation?

Chapter 18 Key Question Solutions (29.0K)
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