#1
Which of the following is NOT considered an antitrust violation?
Monopolizing a market through superior innovation and competition
ExplanationInnovation-driven market dominance is not an antitrust violation.
#2
What is the main objective of antitrust laws?
To encourage fair competition and prevent monopolistic practices
ExplanationAntitrust laws aim to foster fair competition and prevent monopolies.
#3
What is the term used to describe a situation where a single company dominates an entire industry?
Monopoly
ExplanationWhen one company dominates, it's a monopoly.
#4
What is the term for a company that holds a dominant position or monopoly in its market?
Market leader
ExplanationA company with market dominance is a market leader.
#5
Which of the following is NOT a type of antitrust violation?
Market segmentation
ExplanationMarket segmentation is not typically considered an antitrust violation.
#6
What is the term for a situation where a company has exclusive control over the production of a certain good or service?
Monopoly
ExplanationExclusive control over production is a monopoly.
#7
Which antitrust case resulted in the breakup of the Standard Oil Company?
Standard Oil Co. of New Jersey v. United States
ExplanationStandard Oil Co. of New Jersey v. United States led to Standard Oil's breakup.
#8
What is the Sherman Antitrust Act of 1890 aimed to prevent?
Monopolistic behavior
ExplanationThe Sherman Act targets monopolistic practices.
#9
Which of the following is an example of a horizontal restraint of trade?
An agreement between competitors to allocate customers
ExplanationAllocating customers among competitors is a horizontal restraint.
#10
Which landmark antitrust case involved the breakup of AT&T's telecommunications monopoly?
United States v. AT&T
ExplanationUnited States v. AT&T broke up AT&T's telecom monopoly.
#11
Which antitrust legislation primarily addresses issues related to mergers and acquisitions?
Clayton Antitrust Act
ExplanationThe Clayton Act addresses merger and acquisition issues.
#12
What is the term for a market structure in which there are only a few firms dominating the market?
Oligopoly
ExplanationA market dominated by a few firms is an oligopoly.
#13
What agency is responsible for enforcing federal antitrust laws in the United States?
Department of Justice (DOJ)
ExplanationThe Department of Justice enforces antitrust laws.
#14
What is the term for a practice where a company sells the same product at different prices to different buyers?
Price discrimination
ExplanationSelling the same product at different prices is price discrimination.
#15
What agency is responsible for reviewing mergers and acquisitions to ensure compliance with antitrust laws in the United States?
Department of Justice (DOJ)
ExplanationThe DOJ reviews mergers and acquisitions for antitrust compliance.
#16
What is the term for a situation where a company prices its products below cost to drive competitors out of business?
Predatory pricing
ExplanationPricing below cost to eliminate competition is predatory pricing.
#17
What is the term for a practice where a company acquires its competitors to eliminate competition?
Merger monopoly
ExplanationAcquiring competitors to eliminate competition is a merger monopoly.