Question

QUESTION 10

1. It is illegal to price discriminate EXCEPT in cases in which the price differences are due to actual cost differences. This situation is due to which antitrust act?

   		Contestable Market Act
   		Clayton Act
   		Federal Trade Commission Act
   		Sherman Antitrust Act

1 points   

QUESTION 11

1. If a firm is an oligopolist, which is NOT true?

   		It can sell all the units it wants at the going market price.
   		It must pay attention to other firms' prices.
   		It is one of a relatively small number of firms dominating its industry.
   		It is engaged in a strategic game.

1 points   

QUESTION 12

1. Which of the following mergers would most likely be challenged by the Federal Trade Commission?

   		an automaker and an insurance company
   		two largest wireless service providers in the U.S. wireless communication industry
   		two restaurants in a large metro area
   		one oil refinery in the U.S. and another oil refinery in Canada

1 points   

QUESTION 13

1. In a court decision in June 2001, the Federal District Count of Appeals in Washington, D.C. found that Microsoft had violated the

   		Robinson-Patman Act.
   		Clayton Act.
   		Sherman Act.
   		Celler-Kefauver Act.

Answer 1

10) Clayton Act.

( The real answer is Robinson- patman act which was passed in 1936 to outlaw price discrimination. Since it was an amendment to Clayton anti trust act passed in 1914 , calyton act is the most feasible option.)

11) lt can sell all the output it wants at the market price

( A firm in perfect competition market sell all the output it wants at the market price.All other characteristics like paying firm attention to the price of others ,being engaged in strategic game and a few firms dominating the market belong to oligopoly)

12) Two largest wireless service providers in US wireless communication industry.

( Since these two are the largest wireless firms in the Industry, their merger can be anti-competitive.lt will substantially lessen the competition or tend to create a monopoly. So Federal law commission can challenge the merger.)

13) Sherman Act

( Microsoft's unfair trade practices were brought in front of the department of justice in 1998.The company was sued for violating the Sherman Act.In 2001, judge also gave a verdict that, Microsoft has indeed violated the Sherman Act and ordered the company to break up into two entities.)