Modern Justice Department guidelines evaluate mergers according to how they would change the industry's
b.four-firm concentration ratio.
c.eight-firm concentration ratio.
d.twelve-firm concentration ratio.
94.The merger of two firms producing personal computers is an example of a __________ merger.
95.The merger of a brewery with an aluminum can producer is an example of a __________ merger.
96.The Justice Department most closely examines proposed __________ mergers.
97.The type of merger most likely to reduce competition in an industry is a(n) __________ merger.
98.The public choice theory of regulation states that a regulatory agency makes decisions based on
a.surveys of what the public believes is in the best interest.
b.its own conception of what is in the public's best interest.
c.how these decisions affect the well-being of the agency itself.
d.how these decisions affect the economic profits of the regulated firms.
99.Suppose a regulatory agency makes decisions that seem to require an ever-growing agency budget and staff of regulators to monitor firms and enforce the decisions. This would be evidence in support of the __________ theory of regulation.
100.Economists assert that government regulation
a.has no costs if it has positive benefits.
b.has no benefits if it has positive costs.
c.always has benefits in excess of costs.
d.always has costs in excess of benefits.
e.has benefits that may be greater than, less than, or equal to the costs.
101.The following statement, "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is hereby declared illegal," is part of the
c.Federal Trade Commission Act.
e.Celler-Kefauver Antimerger Act.
102.Price discrimination was deemed illegal by the
d.Federal Trade Commission Act.
e.none of the above
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