What is the goal of antitrust policies?

		To promote businessto preserve high prices and limit choice forconsumers.
		To make sure businesses maintain a healthyprofit
		To make sure government regulations are followed
		To promote competition, to preserve low prices and more choice for consumers.

Identify the term of each definition below.

Restricts a dealer's ability to sell below a certain price, which prevents dealers from competing with each other. Regulatory capture predatory pricing minimum resale price maintenance tie-in sales definition not included exclusive dealing

When a firm agrees to buy or sell to only one other party.Regulatory capture predatory pricing minimum resale price maintenance tie-in sales definition not included exclusive dealing

Requires the buyer to purchase an additional product along with the one he wants.Regulatory capture predatory pricing minimum resale price maintenance tie-in sales definition not included exclusive dealing

When firms reduce prices to drive competitors out of business. Regulatory capture predatory pricing minimum resale price maintenance tie-in sales definition not included exclusive dealing

What happens when industries play a large role in designing their ownregulations.

What would be evidence of serious competition between firms in an industry?

	A.	A large number of competitors offering very differentproducts.
	B.	A small number of competitors offering a very similarproduct.
	C.	A large number of competitors offering a very similar product.
	D.	A small number of competitors offering very differentproducts.

Identify whether each statement is true or false.

- A. B.	Market power is the ability of a firm to charge a price greater than marginal cost
- A. B.	Most markets are perfectively competitive
- A. B.	Charging aprice greater than marginal cost leads to maximum economic efficiency
- A. B.	In reality, few markets are perfectively competitive

A.	True
B.	False

What is the purpose of the antitrustlaws?

	A.	exempt natural monopolies from government regulations.
	B.	make illegal any attempts to form a monopoly or to collude.
	C.	Both A and B
	D.	allow firms to charge buyers different prices.
	E.	allow firms to buy stock in competitors.

Match each law with its main provision.

- A. B. C. D. E.	Made unfair and deceptive sales practices illegal
- A. B. C. D. E.	Established the government\'s power to investigate unfair competitive practices on its own initiative or at the request of injured firms
- A. B. C. D. E.	Sought to prevent firms from developing monopoly power
- A. B. C. D. E.	Prohibited competition-reducing acquisition of a firm\'s physical assets by another firm
- A. B. C. D. E.	Outlawed restraints of trade and monopolization

A.	Federal Trade commission Act of 1914
B.	Clayton Act of 1914
C.	Sherman Act of 1890
D.	Celler-KefauverAct of 1950
E.	Wheeler-Lea Actof 1938

What is the difference between a horizontal merger and a verticalmerger?

	A.	A horizontal merger is a merger between firms of different sizes,while a vertical merger is a merger between firms ofthesamesize.
	B.	A horizontal merger is a merger between firms thatarepricetakers,while a vertical merger is a merger between firms thathavemarketpower.
	C.	A horizontal merger is a merger between firms in the sameindustry, while a vertical merger is a merger between firms at different stages of the production of a good.
	D.	A horizontal merger is a mergerthat wouldincreaseefficiency, while a vertical merger is a merger that would decreaseefficiency.
	E.	A horizontal merger is a merger between firms in differentindustries, while a vertical merger is a merger between firms in the same industry.