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The primary rationale for antitrust policy is mistrust and an expectation of foul play.

The primary rationale for antitrust policy is mistrust and an expectation of foul play.

 

12.              The biggest weapon of the Federal Trade Commission (FTC) is the “threat” of antitrust
                            action, not action itself.

13.              The “per se” standard makes antitrust action less likely than would the “rule of reason”.

 

14.              The theory of countervailing power provides support for a more laissez-faire approach to
                            government regulation.

15.              When firms already in the industry produce under conditions of substantial economies of
                            scale, entry into the industry is usually more difficult than if the firms produced without
                            those economies of scale.

16.              When firms already in the industry produce under conditions of substantial economies of
                            scale, the market is said to be contestable.

17.              If the courts apply the rule of reason criterion to a firm that dominates a market but does
                            not engage in anticompetitive behavior, it would not find the firm to be in violation of
                            the antitrust laws.

18.              If the courts apply the per se criterion to a firm that dominates a market but does not engage
                            in anticompetitive behavior, it would not find the firm to be in violation of the antitrust laws.

19.              The purchase of voting stock by a competing firm is illegal in the United States.

 

20.              Antitrust legislation prohibits a person from being on the board of directors of more than
                            one firm at any time.

Dec 11 2019 View more View Less

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