The courts have ruled that it is a reasonable restraint of trade (and therefore permissible) for the owner of a business tosell his business and sign a contract with the new owner saying he will not compete with her within a vicinity of, say, 100miles, for a period of, say, 5 years. If this is a reasonable restraint of trade, can you give an example of what you wouldconsider an unreasonable restraint of trade? Explain how you decide what is a reasonable restraint of trade and what isn't. Site examples from your textbook and from your own experience.

It is important to take into account a number of variables when determining what constitutes a fair…

Answered: The courts have ruled that it is a…

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Government And Product Markets: Antitrust And Regulation

Section: Chapter Questions

Problem 10QP

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The courts have ruled that it is reasonable restraint of trade (and therefore permissible) for the owner of a business to sell his business & a contract with the new owner saying that he will not compete with her within a vicinity of, say, 100 miles , for a period of, five years. if this type of contract is a reasonable restraint of trade, you can give an example of what you would consider an unreasonable restraint of trade? explain how you decide what is a reasonable restraint of trade and what is not.
What are the three conditions on which patents may be granted if?
2. The state has announced its plans to license two firms to serve a market whose demand curve is Een by P=100-Q. The technology is such that each can produce any given level of output at zero t, but once each firm's output is chosen, it cannot be altered. What's the most you would be willing to pay for one of these licenses if you knew you would be able to choose your level of output first (Assuming your choice was observable by the rival firm)? b. How much would your rival be willing to pay for the right to choose second?
We have learned the definition of monopoly as a market with one seller. Let's take some time to understand what that means, and how it can come about. What are some of the reasons that a market could be a monopoly? What is giving the monopolist their exclusive position in the market? Everyone should discuss a few reasons and/or examples of how a monopoly can come into existence. Typically the model of Monopoly predicts that all customers are charged the same price and that the monopolist selects the quantity and price combination from the market demand curve that maximizes profit. However, there are times where a monopolist may at least attempt to charge different prices for the exact same product depending on each consumer's willingness and ability to pay. In this case the monopolist might offer the product at a lower price to those who would otherwise not buy it, thus increasing quantity consumed in the market and reducing some of what is called the dead weight loss of monopoly.…
Briefly explain the difference between economic regulation & antitrust policy--when & why would government employ the respective types of policy?
If the transit system were allowed to operate as an unregulated monopoly, what output would it supply and what price would it charge?
ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened?
If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?
For many years, the Justice Department has tried to break up large firms like IBM, Microsoft, and most recently Google, on the grounds that their large market share made them essentially monopolies. In a global market, where U.S. films compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context?
Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers?
If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?
As a result of globalization and new information and communications technology, would you expect that the definitions of markets that antitrust authorities use will become broader or narrower?

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