Question 1

Answer the question on the basis of the following table showing market shares of firms in hypothetical industries.Assume these are distinct industries with no buyer-seller relationships or competition among them.   Market Share of Firms in Industry \begin{array}{c}&&	ext { Market Share of Firms in Industry }\end{array}​​ Market Share of Firms in Industry ​ 
 IndustryAlphaBetaCappaDelta12345630302020−−−−8010531125252525−−−−202020201010\begin{array}{c}\begin{array}{lll}\Industry\Alpha\Beta\Cappa\Delta\\end{array}\begin{array}{lll}\1&2&3&4&5&6\30&30&20&20&--&--\80&10&5&3&1&1\25&25&25&25&--&--\20&20&20&20&10&10\end{array}\end{array}IndustryAlphaBetaCappaDelta​130802520​230102520​32052520​42032520​5−−1−−10​6−−1−−10​​  Refer to the table.A structuralist would most likely assert that there is a violation of antitrust law in which industry?

Accepted Answer

A)   Alpha.
B)   Beta.
C)   Cappa.
D)   Delta. E) A) and C)
F) C) and D)

Question 2

Restructuring of a major industry resulted from the:

Accepted Answer

A)   U.S.Steel case.
B)   AT&T case.
C)   IBM case.
D)   DuPont cellophane case.E) All of the above
F) A) and D)

Question 3

Tying contracts are illegal under the:

Accepted Answer

A)   Wagner Act of 1935.
B)   Clayton Act of 1914.
C)   FTC Act of 1914.
D)   Celler-Kefauver Act of 1950.E) B) and D)
F) B) and C)

Question 4

(Last Word) The final settlement of the United States v.Microsoft case,in part:

Accepted Answer

A)   requires that Microsoft provide technical information to competing companies so they can develop software programs that work as well with Windows as Microsoft's own products.
B)   broke up Microsoft into two competing firms.
C)   found Microsoft not guilty of violating the Sherman Act.
D)   forced Microsoft to sell off its major applications programs such as Word and PowerPoint.E) A) and C)
F) B) and C)

Question 5

Which one of the following is concerned with social regulation?

Accepted Answer

A)   Equal Employment Opportunity Commission
B)   Federal Communications Commission
C)   Sherman Commission
D)   Federal Energy Regulatory CommissionE) B) and C)
F) A) and B)

Question 6

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

Accepted Answer

A)   Microsoft case.
B)   Standard Oil case.
C)   U.S.Steel case.
D)   DuPont cellophane case.E) B) and C)
F) C) and D)

Question 7

The Sherman Act:

Accepted Answer

A)   was declared unconstitutional in 1895.
B)   provided for government regulation of the railroads.
C)   declared monopoly and restraints of trade to be illegal.
D)   exempted the railroad and communications industries from the antitrust laws.E) None of the above
F) A) and C)

Question 8

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

Accepted Answer

A)   A conglomerate merger.
B)   A vertical merger.
C)   A price-fixing arrangement among all the industry firms.
D)   A horizontal merger.E) A) and B)
F) A) and C)

Question 9

The Sherman Act was designed to:

Accepted Answer

A)   exempt commercial banks from the antitrust laws.
B)   make interlocking directorates legal.
C)   prohibit misleading and antisocial advertising.
D)   make monopoly and acts that restrain trade illegal.E) C) and D)
F) All of the above

Question 10

Which of the following is correct?

Accepted Answer

A)   Vertical mergers are more likely to be acceptable under antitrust laws than are horizontal mergers.
B)   A vertical merger entails the merging of two or more competing firms.
C)   Horizontal mergers are more likely to be acceptable under antitrust laws than are vertical mergers.
D)   Conglomerate mergers occur when two or more firms at various stages in a good's production are combined.E) None of the above
F) All of the above

Question 11

A function of the Federal Trade Commission is to:

Accepted Answer

A)   investigate instances of faulty and misleading advertising.
B)   establish railway rates for interstate railroads.
C)   ban or recall unsafe consumer products.
D)   prevent insider trading in securities markets.E) B) and C)
F) A) and D)

Question 12

In which of the following cases was the firm found not guilty of violating the Sherman Act?

Accepted Answer

A)   Standard Oil case.
B)   Microsoft case.
C)   Alcoa case.
D)   DuPont cellophane case.E) A) and D)
F) C) and D)

Question 13

The Federal Trade Commission:

Accepted Answer

A)   is empowered to hold public hearings to investigate unfair practices.
B)   prohibits interlocking directorates in interstate industries.
C)   regulates airline fares.
D)   regulates such transportation industries as railroads and trucking.E) None of the above
F) A) and B)

Exam 20: Antitrust Policy and Regulation

Which of the following is correct?

Correct Answer
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Restructuring of a major industry resulted from the:

Correct Answer
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The Sherman Act:

Correct Answer
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A function of the Federal Trade Commission is to:

Correct Answer
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Tying contracts are illegal under the:

Correct Answer
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The Federal Trade Commission:

Correct Answer
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Correct Answer
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Which one of the following is concerned with social regulation?

Correct Answer
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The Sherman Act was designed to:

Correct Answer
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(Last Word) The final settlement of the United States v.Microsoft case,in part:

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

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

Correct Answer
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In which of the following cases was the firm found not guilty of violating the Sherman Act?

Correct Answer
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Exam 20: Antitrust Policy and Regulation

Which of the following is correct?

Correct AnswerverifiedShow Answer

Restructuring of a major industry resulted from the:

Correct AnswerverifiedShow Answer

The Sherman Act:

Correct AnswerverifiedShow Answer

A function of the Federal Trade Commission is to:

Correct AnswerverifiedShow Answer

Tying contracts are illegal under the:

Correct AnswerverifiedShow Answer

The Federal Trade Commission:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which one of the following is concerned with social regulation?

Correct AnswerverifiedShow Answer

The Sherman Act was designed to:

Correct AnswerverifiedShow Answer

(Last Word) The final settlement of the United States v.Microsoft case,in part:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In which of the following cases was the firm found not guilty of violating the Sherman Act?

Correct AnswerverifiedShow Answer

Correct Answer
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