#1
Which of the following is NOT a type of anticompetitive behavior?
Horizontal merger
ExplanationHorizontal mergers typically involve combining competing companies, but not all are anticompetitive.
#2
Which agency is responsible for enforcing antitrust laws in the United States?
Federal Trade Commission (FTC)
ExplanationThe FTC is tasked with promoting consumer protection and preventing anticompetitive business practices.
#3
Which antitrust case led to the breakup of AT&T's Bell System in 1984?
United States v. AT&T
ExplanationThis case resulted in the divestiture of AT&T's regional telephone companies, leading to increased competition.
#4
What is the main objective of antitrust laws?
To promote fair competition and protect consumers
ExplanationAntitrust laws aim to prevent monopolistic behavior and ensure markets are competitive and fair for consumers.
#5
Which term refers to the merging of two or more companies that are direct competitors?
Horizontal merger
ExplanationIt's the consolidation of firms operating in the same industry or producing similar products.
#6
Which of the following is NOT a type of antitrust enforcement action?
Tax breaks
ExplanationTax breaks are unrelated to antitrust enforcement and don't address anticompetitive behavior.
#7
Which legislation was the first federal antitrust statute of the United States?
Sherman Antitrust Act
ExplanationEstablished in 1890, it aimed to prevent anticompetitive practices by businesses.
#8
What does 'market concentration' refer to in antitrust regulation?
The degree to which market power is concentrated among few firms
ExplanationIt assesses how much dominance a few firms have in a particular market.
#9
What is the 'consumer welfare standard' in antitrust law?
A principle that assesses the impact of business practices on consumer prices and choices
ExplanationIt focuses on maintaining or enhancing consumer welfare through competition.
#10
What is 'price discrimination' in the context of antitrust regulations?
Charging different prices for the same product to different buyers, where the price difference does not reflect differences in cost
ExplanationIt's when a seller offers different prices to different buyers without justification based on cost differences.
#11
Which principle guides antitrust enforcement in the European Union?
Consumer welfare standard
ExplanationSimilar to the U.S., the EU focuses on maintaining consumer welfare as a primary goal of antitrust enforcement.
#12
Which antitrust law prohibits price discrimination, exclusive dealing, and tying arrangements?
Robinson-Patman Act
ExplanationThis act aims to protect small businesses by preventing unfair pricing practices and discriminatory treatment.
#13
Which agency is responsible for antitrust enforcement in the European Union?
European Commission
ExplanationThe European Commission oversees antitrust enforcement and competition policy within the EU.
#14
What is the 'rule of reason' in antitrust law?
A legal doctrine that evaluates whether a restraint of trade promotes or suppresses competition
ExplanationIt balances the restraint's potential harm to competition against its procompetitive effects.
#15
Which landmark case established the 'essential facilities doctrine' in antitrust law?
Standard Oil Co. of New Jersey v. United States
ExplanationThis case recognized that certain facilities are essential for competitors to effectively compete.
#16
What is 'tying' in antitrust law?
A practice where a seller requires a buyer to purchase a separate product or service as a condition for obtaining the desired product or service
ExplanationIt's when a seller links the sale of one product to another, often less desirable, product.
#17
What is 'bid rigging' in antitrust law?
Colluding to manipulate the bidding process to eliminate competition
ExplanationIt's when competitors conspire to fix bids or allocate contracts to specific parties, undermining the competitive process.
#18
What is the 'efficiency defense' in antitrust law?
A defense used to justify anticompetitive behavior by demonstrating its efficiency gains
ExplanationIt argues that anticompetitive practices may enhance overall economic efficiency, thus justifying their legality.
#19
What is the 'Herfindahl-Hirschman Index (HHI)' used for in antitrust analysis?
To measure the level of market concentration
ExplanationIt quantifies the extent of market concentration based on the share of market participants and their size.
#20
Which legal doctrine presumes that certain business practices are inherently anticompetitive and illegal?
Per se rule
ExplanationIt assumes that certain practices, like price fixing or bid rigging, are inherently harmful to competition without requiring detailed analysis.