Question

Question 253.125 pts

What was the first (and arguably most important) act of antitrust litigation in the United States?

Monopolization and trust formation act

Sherman Act

Clayton Act

Interstate Commerce Commission Act

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Question 263.125 pts

You are evaluating the possible merger of Honda and Philip Morris. What kind of merger is this?

Horizontal

Conglomerate

None of the above

Vertical

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Question 273.125 pts

  When deregulation was initially being discussed, what was one of the most serious concerns raised for electric companies?

Consumer welfare would be highly increased

Prices would decrease substantially

Frequent blackouts would ensue

Electricity would be less involved with the NASA project

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Question 283.125 pts

Suppose there are 6 firms in an entire industry. Their market shares are as follows:

Firm 1: 20%

Firm 2: 10%

Firm 3: 30%

Firm 4: 5%

Firm 5: 17%

Firm 6: 18%

What is the 4-firm ratio and the HHI for this industry?

4-firm: 77%, HHI: 1689

4-firm: 85%, HHI: 2038

4-firm: 50%, HHI: 738

4-firm: 65%, HHI: 1649

Answer 1

253. Option four as Interstate Commerce Commission Act came in 1887. It was followed by the Sherman Antitrust Act of 1890, the Clayton Antitrust Act of 1914 and the Federal Trade Commission Act of 1914

263. Option two. as two companies which are unrelated have come together.Philip Morris International Inc. is an American multinational cigarette and tobacco manufacturing company. Honda is an automobile giant.

273. Deregulation is the reduction or elimination of government power in a particular industry. Option two. as competition increases price wars may happen.

274.The four-firm concentration ratio is determined by adding up the percentage market share of each of the top four firms in the industry. Hence it is : 85 %(added top four - 30 %+ 20%+18%+17%)

HHI Index calculated taking the market share of each firm in the market, squaring each one and adding up the sum.Hence it is 2038( Square market share of each and add). Hence option two.