1. The Federal Trade Commission ________ the merger between AT&T and TMobile because the merger was projected to ________.

A.

approved; increase the HHI by only 700 points and not substantially affect market competitiveness

B.

did not approve; cause the firms to engage in predatory pricing

C.

did not approve; increase the HHI by at least 700 points and reduce market competitiveness

D.

did not approve; increase then fourfirm concentration ratio by 20 percent

E.

approved; decrease the HHI by almost 500 points

2. The focus of antitrust legislation is to

A.

limit the power of regulatory bodies.

B.

ensure that producers earn enough profit to stay in business so that consumers are not harmed by too many businesses closing.

C.

maintain competition.

D.

encourage cartels to form because they are easier to regulate.

E.

force society to act in the best interest of producers.