• 1.Strong economic concentration can be efficient and a near necessity for international competition, but it can also lead to all of the following, except?
• Poorer service
• Equitable distribution of political power
• Higher prices
• Suppressed employee wages
• 2. Which of the following is correct regarding the Microsoft litigation?
• The essence of the plaintiffs' complaint was that Microsoft had violated various antitrust laws in gaining and maintaining its market dominance.
• The United States court of appeals ordered Microsoft split into two (2) companies as a remedy for its antitrust wrongs, but the federal district court threw out that order.
• No states were parties to the litigation.
• The essence of the plaintiffs' complaint was that Microsoft was too big.
• 3.Which of the following is not part of the framework for monopoly analysis that has emerged from case law?
• Compute the defendant's market power
• Assess the defendant's strict liability
• Assess the defendant's intent
• Raise any available defenses
• 4. Which of the following is a disadvantage of mergers?
• Growth by merger is often more expensive than internal growth.
• Mergers hinder economies of scale.
• Mergers may lead to higher prices.
• Mergers may contribute to management inefficiencies.
• 5. A company that produces designer handbags acquiring a furniture company would be an example of a(n) __________ merger.
• vertical
• conglomerate
• oligopolistic
• horizontal