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University of Texas, Rio Grande Valley *

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3338

Subject

Economics

Date

Jan 9, 2024

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docx

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3

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Question 1 5 out of 5 points Integrated Software, Inc., conditions the sale of one of its products on Inventory Office System's agreeing to buy another of Integrated's products. This deal is Selected Answer: legal, depending on its purpose and the effect on competition. Question 2 0 out of 5 points Mergers between firms that compete in the same market are vertical mergers. Selected Answer: True Question 3 5 out of 5 points Most group boycotts are legal. Selected Answer: False Question 4 5 out of 5 points USA Cellphone Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is Selected Answer: subject to evaluation under the rule of reason. Question 5 5 out of 5 points A suit is filed against Urbana Corporation, alleging that the firm committed the offense of monopolization. To determine whether Urbana has monopoly power requires looking at Selected Answer: the relevant geographic market and the relevant product market. Question 6 5 out of 5 points A firm may be a monopolist even though it is not the sole seller in a market. Selected Answer: True Question 7 5 out of 5 points When a small number of companies share a large part of a market, the market is concentrated. Selected Answer: True Question 8 0 out of 5 points Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are distributed to authorized dealers, including Macho Motors, Inc. Macho operates dealerships in several locations. Lightning imposes territorial restrictions on Macho to insulate other dealers from direct competition. This is Selected Answer: a legal restraint of trade. Question 9
5 out of 5 points Any action challenged as an attempt to monopolize must have been specifically intended to exclude competitors and garner monopoly power. Selected Answer: True Question 10 0 out of 5 points The basic purpose of antitrust law is to restrict competition. Selected Answer: True Question 11 5 out of 5 points To prevent its competitors from obtaining sufficient supplies to make their products, Molded Plastics, Inc., uses its market power to increase the prices of those supplies. This is Selected Answer: predatory bidding. Question 12 5 out of 5 points Resale price maintenance agreements are subject to analysis under the rule of reason. Selected Answer: True Question 13 5 out of 5 points Only the U.S. Department of Justice can prosecute violations of all of the antitrust laws. Selected Answer: False Question 14 5 out of 5 points Monopsony power is market power on the buy side of a market. Selected Answer: True Question 15 5 out of 5 points Delta Services, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Efficient Systems Company, another Florida firm. The two firms agree that Delta will operate in south Florida and Efficient will operate in north Florida. This is Selected Answer: a market division. Question 16 5 out of 5 points Under the rule of reason, a court will consider the effect or the potential effect of a business agreement on competition. Selected Answer: True Question 17 5 out of 5 points
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