#1
What is the primary goal of antitrust laws?
To promote competition and prevent monopolistic behavior
ExplanationAntitrust laws aim to ensure fair competition and prevent the formation of monopolies.
#2
What is the primary enforcement agency responsible for enforcing antitrust laws in the United States?
Department of Justice (DOJ)
ExplanationThe DOJ is tasked with enforcing antitrust laws in the United States.
#3
What is the term used to describe an agreement between competitors to fix prices or divide markets?
Collusion
ExplanationCollusion involves illegal cooperation between competitors to manipulate markets.
#4
What is the main purpose of antitrust enforcement agencies conducting investigations?
To determine if a company is guilty of an antitrust violation
ExplanationAgencies investigate to ascertain if companies are engaging in anticompetitive practices.
#5
What is the term used to describe a market structure where there is only one seller with significant control over supply and prices?
Monopoly
ExplanationA monopoly exists when a single entity dominates a market with no competition.
#6
What is the term for a market structure characterized by a small number of large firms dominating the market?
Oligopoly
ExplanationAn oligopoly exists when a few large firms dominate a market, often resulting in limited competition.
#7
Which of the following is an example of a company that faced antitrust action due to monopolistic practices?
All of the above
ExplanationVarious companies such as Microsoft, Standard Oil, and AT&T have faced antitrust action.
#8
Which of the following is NOT a major U.S. antitrust law?
Consumer Protection Act
ExplanationThe Consumer Protection Act is not primarily focused on antitrust regulation.
#9
Which of the following is NOT a type of antitrust violation?
Product development
ExplanationProduct development is not typically considered an antitrust violation.
#10
Which U.S. antitrust law specifically addresses mergers and acquisitions?
Hart-Scott-Rodino Antitrust Improvements Act
ExplanationThis law requires companies to report large mergers and acquisitions to the FTC and DOJ for review.
#11
Which of the following is NOT a potential remedy for antitrust violations?
Tax exemptions
ExplanationTax exemptions are not typically a remedy for antitrust violations.
#12
Which antitrust law prohibits agreements, conspiracies, or combinations in restraint of trade?
Sherman Antitrust Act
ExplanationThe Sherman Act targets activities that restrain free trade and competition.
#13
Which of the following actions would likely violate antitrust laws?
A group of companies colluding to fix prices in the market
ExplanationPrice-fixing through collusion is a clear violation of antitrust laws.
#14
What is the 'essential facilities doctrine' in antitrust law?
A doctrine that mandates companies to share essential facilities with competitors
ExplanationIt requires companies to provide competitors with access to essential facilities or resources.
#15
What is predatory pricing in the context of antitrust law?
Selling products below cost to drive competitors out of the market
ExplanationPredatory pricing involves selling products at a loss to eliminate competition.
#16
What is market foreclosure in the context of antitrust law?
A strategy to restrict competitors' access to necessary inputs or distribution channels
ExplanationIt involves tactics to limit competitors' access to essential market resources.
#17
What is the term for a situation where a firm uses its market power in one market to gain an advantage in another market?
Market leveraging
ExplanationMarket leveraging involves leveraging dominance in one market to gain advantage in another.
#18
What is the term for a situation where a company sells a product or service below its cost to drive competitors out of the market, with the intention of raising prices later?
Dumping
ExplanationDumping involves selling goods below cost to gain market share and later raise prices.