Chapter 31 Antitrust Law and Promoting Competition
TRUEFALSE
1. The purpose of antitrust legislation is to foster competition.
(A) True
(B) False
Answer : (A)
2. The Sherman Act is an example of legislation designed to curb anticompetitive business practices.
(A) True
(B) False
Answer : (A)
3. Market power is the ability of a firm to enter a given market.
(A) True
(B) False
Answer : (B)
4. A restraint of trade is an agreement between firms that has the effect of reducing anticompetitive
business practices.
(A) True
(B) False
Answer : (B)
5. Monopoly power is an extreme amount of market power.
(A) True
(B) False
Answer : (A)
6. An act must substantially affect interstate commerce to violate antitrust law.
(A) True
,(B) False
Answer : (A)
7. Unilateral conduct cannot result in a violation of antitrust law.
(A) True
(B) False
Answer : (B)
8. An agreement that is deemed a per se violation will be examined by a court to determine whether
the agreement actually constitutes a reasonable restraint of trade.
(A) True
(B) False
Answer : (B)
9. Any agreement among competitors to fix prices is subject to evaluation under the rule of reason.
(A) True
(B) False
Answer : (B)
10. A group boycott that is intended to eliminate competition is legal.
(A) True
(B) False
Answer : (B)
11. A market division by class of customer between rival firms does not violate antitrust law.
(A) True
(B) False
Answer : (B)
12. Territorial and customer restrictions are judged under the rule of reason.
(A) True
, (B) False
Answer : (A)
13. Resale price maintenance agreements are per se violations of the Sherman Act.
(A) True
(B) False
Answer : (B)
14. A trade association practice or agreement that restrains trade is analyzed under the rule of
reason.
(A) True
(B) False
Answer : (A)
15. Joint refusals to deal are not subject to scrutiny under the Sherman Act.
(A) True
(B) False
Answer : (B)
16. Section 1 of the Sherman Act condemns monopolization.
(A) True
(B) False
Answer : (B)
17. Predatory pricing involves selling a product at prices substantially above the fair market value.
(A) True
(B) False
Answer : (B)
18. A firm is not a monopolist unless it is the sole seller in a market.
(A) True
TRUEFALSE
1. The purpose of antitrust legislation is to foster competition.
(A) True
(B) False
Answer : (A)
2. The Sherman Act is an example of legislation designed to curb anticompetitive business practices.
(A) True
(B) False
Answer : (A)
3. Market power is the ability of a firm to enter a given market.
(A) True
(B) False
Answer : (B)
4. A restraint of trade is an agreement between firms that has the effect of reducing anticompetitive
business practices.
(A) True
(B) False
Answer : (B)
5. Monopoly power is an extreme amount of market power.
(A) True
(B) False
Answer : (A)
6. An act must substantially affect interstate commerce to violate antitrust law.
(A) True
,(B) False
Answer : (A)
7. Unilateral conduct cannot result in a violation of antitrust law.
(A) True
(B) False
Answer : (B)
8. An agreement that is deemed a per se violation will be examined by a court to determine whether
the agreement actually constitutes a reasonable restraint of trade.
(A) True
(B) False
Answer : (B)
9. Any agreement among competitors to fix prices is subject to evaluation under the rule of reason.
(A) True
(B) False
Answer : (B)
10. A group boycott that is intended to eliminate competition is legal.
(A) True
(B) False
Answer : (B)
11. A market division by class of customer between rival firms does not violate antitrust law.
(A) True
(B) False
Answer : (B)
12. Territorial and customer restrictions are judged under the rule of reason.
(A) True
, (B) False
Answer : (A)
13. Resale price maintenance agreements are per se violations of the Sherman Act.
(A) True
(B) False
Answer : (B)
14. A trade association practice or agreement that restrains trade is analyzed under the rule of
reason.
(A) True
(B) False
Answer : (A)
15. Joint refusals to deal are not subject to scrutiny under the Sherman Act.
(A) True
(B) False
Answer : (B)
16. Section 1 of the Sherman Act condemns monopolization.
(A) True
(B) False
Answer : (B)
17. Predatory pricing involves selling a product at prices substantially above the fair market value.
(A) True
(B) False
Answer : (B)
18. A firm is not a monopolist unless it is the sole seller in a market.
(A) True
