Ch46-TB1-WBL-10O¦êv-F to Eric

Ch46-TB1-WBL-10O¦Ã&ordf...

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Chapter 46 Antitrust Law N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. The basic purpose of antitrust law is to prevent competition. ANSWER: F PAGE: 920 TYPE: = 2. The Sherman Act prohibits concerted activity that unreasonably restrains  trade. ANSWER: T PAGE: 920 TYPE: = 3. The Sherman Act prohibits individual anticompetitive behavior that pro- duces or is intended to produce monopoly power. 207
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208 TEST BANK 1—UNIT NINE: GOVERNMENT REGULATION ANSWER: T PAGE: 920 TYPE: = 4. Under the rule of reason, a court will consider the purpose of an agreement  between competitors. ANSWER: T PAGE: 921 TYPE: N 5. Market power is the power to affect the market price of a product. ANSWER: T PAGE: 921 TYPE: N
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CHAPTER 46: ANTITRUST LAW 209 6. A price fixing agreement is analyzed under the rule of reason. ANSWER: F PAGE: 922 TYPE: N 7. Any agreement that artificially fixes prices is an unreasonable restraint of  trade. ANSWER: T PAGE: 922 TYPE: N 8. A group boycott cannot violate Section 1 of the Sherman Act. ANSWER: F PAGE: 922 TYPE: N 9. A geographical market division between rival firms is   not   a violation of  antitrust laws. ANSWER: F PAGE: 922 TYPE: = 10. If a joint venture does not involve price fixing or market divisions, it cannot  be in violation of antitrust law. ANSWER: F PAGE: 923 TYPE: N 11. An agreement between firms operating at different levels in the manu- facturing and distribution process cannot violate antitrust law. ANSWER: F PAGE: 923 TYPE: N 12. Territorial and customer divisions are judged under a rule of reason. ANSWER: F PAGE: 923 TYPE: = 13. A vertical restraint is an agreement that restrains competition between  firms competing in the same market.
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210 TEST BANK 1—UNIT NINE: GOVERNMENT REGULATION ANSWER: F PAGE: 923 TYPE: = 14. A unilateral refusal to deal with a specific party could be considered a vio- lation of antitrust law. ANSWER: T PAGE: 924 TYPE: = 15. A firm can have a significant degree of market power without violating the  antitrust laws. ANSWER: T PAGE: 925 TYPE: N 16. Price discrimination is not always a violation of antitrust law. ANSWER: T PAGE: 926 TYPE: = 17. In determining the legality of a tying arrangement, there are two relevant  markets to consider. ANSWER:
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Ch46-TB1-WBL-10O¦Ã&ordf...

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