Ch46-TB2-WBL-10O¦êv-F to Eric

Ch46-TB2-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. A restraint of trade is any agreement between firms that has the effect of  reducing competition in the marketplace. ANSWER: T PAGE: 920 TYPE: = 2 Using market power to drive competitors out of business is illegal. ANSWER: T PAGE: 921 TYPE: + 3. Market power is a firm’s power to affect the market price of its product. ANSWER: T PAGE: 921 TYPE: N 4. The Sherman Act applies only to acts that have a significant impact on  interstate commerce. ANSWER: F PAGE: 921 TYPE: N 209
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210 TEST BANK 2—UNIT NINE: GOVERNMENT REGULATION 5. Monopoly power is market power sufficient to control prices and exclude  competition. ANSWER: T PAGE: 921 TYPE: N
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CHAPTER 46: ANTITRUST LAW 211 6. The size of a firm determines whether it is a monopolist. ANSWER: F PAGE: 921 TYPE: N 7. A market division by class of customer between rival firms is a violation of  antitrust law. ANSWER: T PAGE: 922 TYPE: + 8. If a joint venture involves price fixing or a market division, it will be ana- lyzed under the rule of reason. ANSWER: F PAGE: 923 TYPE: = 9. A joint venture is any agreement between two or more buyers or sellers to  refuse   to   engage   in   any   transaction   with   a   particular   person   or  organization. ANSWER: F PAGE: 923 TYPE: = 10. A   resale   price   maintenance   agreement   may   violate   Section   1   of   the  Sherman Act. ANSWER: T PAGE: 924 TYPE: = 11. A relevant product market includes products that are sufficient substitutes  for each other. ANSWER: T PAGE: 925 TYPE: N 12. In measuring a firm’s market power, the market-share test is a binding  principle of law. ANSWER: F PAGE: 925 TYPE: = 13. An  attempt  to monopolize a market cannot violate antitrust law. ANSWER: F PAGE: 925 TYPE: N 14. Exclusive-dealing contracts are  per se  violations of antitrust law. ANSWER: F PAGE: 927 TYPE: =
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212 TEST BANK 2—UNIT NINE: GOVERNMENT REGULATION 15. An exclusive-dealing contract is an agreement between two or more buyers  or sellers to refuse to deal with a specific party. ANSWER: F PAGE: 927 TYPE: N
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CHAPTER 46: ANTITRUST LAW 213 16. A tying arrangement exists when two competitors agree to fix, or “tie,” their  prices at the same level. ANSWER:
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch46-TB2-WBL-10O¦Ã&ordf...

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