Economics (McConnell), 18th Edition

Chapter 18: Antitrust Policy and Regulation


Which policy was applied in the Microsoft antitrust case to assert that the mere possession of monopoly power was not in itself a violation of the Sherman Act?
A)Per se violation
B)Rule of reason
C)Structuralist view
D)Active antitrust perspective
Unlike a vertical merger, a horizontal merger:
A)will not increase industry concentration
B)does not violate antitrust laws
C)will increase the Herfindahl index
D)is a per se violation of the Sherman Act
The philosophical basis for the Sherman Act and the Clayton Act is that:
A)firms with monopoly power restrict output and raise prices
B)perfect information is needed to foster competitive outcomes
C)negative externalities lead to an over allocation of resources to some industries
D)deregulation of industries will foster competition and lower prices
Suppose a fast food chain were to merge with a firm that makes paper and plastic wrappings for the chain's entrees. This would be an example of a:
A)vertical merger
B)conglomerate merger
C)horizontal merger
D)per se violation of antitrust law
Antitrust authorities are unlikely to take action against conglomerate mergers because such mergers:
A)are protected by the Celler-Kefauver Act
B)are unlikely to create monopoly power
C)promote exports, a worthy social goal
D)reduce unemployment, a worthy social goal
The Clayton Act prohibited:
A)unfair and deceptive sales practices that reduce competition
B)vertical mergers
C)conglomerate mergers
D)price discrimination
Which of the following allows injured parties to collect triple damages from illegal monopolies?
A)Celler-Kefauver Act
B)Sherman Act
C)Wheeler-Lea Act
D)Clayton Act
The market shares of the only firms in a particular industry are 40%, 40%, and 30%. The Herfindahl index for this industry is:
Studies of the U.S. deregulation of the airline, trucking, and rail freight industries have revealed that:
A)prices have dropped by one third to one half, adjusted for inflation
B)industry output has decreased, adjusted for population growth
C)these industries have "remonopolized" as firms have either merged or gone out of business
D)deregulation ultimately harms consumers
Among other things, social regulation addresses:
A)pricing decisions by natural monopolies
B)mergers that lead to industry concentration
C)price discrimination
D)product design
Glencoe Online Learning CenterSocial Studies HomeProduct InfoSite MapContact Us

The McGraw-Hill CompaniesGlencoe