Beginning in 1965, the head of the Antitrust Division of the U.S. Department of Justice began to change antitrust policy. How did antitrust policy change?
A) For the first time horizontal mergers were allowed—with government approval—and vertical mergers were allowed without need for approval from the government.
B) For the first time concentration ratios were used to evaluate the degree of competition in the industries of firms that proposed mergers.
C) Proposed mergers no longer needed the approval of the Federal Trade Commission or the court system.
D) The Division began to systematically consider the economic consequences of proposed mergers.
D
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The WWQX Co sells shirts. Shirts with the company label on the tag are perceived to be of higher quality than shirts with the store's label. Yet, shirts are of identical quality regardless of the label. The demand for perceived high-quality shirts is ph = 80 - qh. The demand for perceived low-quality shirts is pl = 19 + ph - ql. The firm can produce shirts at TC = 2qh + 2ql. How many shirts does
the firm label as low quality and how many as high quality? What prices are charged? A) ql = 29; qh = 39 B) ql = 39; qh = 79 C) ql = 19; qh = 25 D) ql = 20; qh = 18
Answer the following questions true (T) or false (F)
1. If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is with an advance in technology. 2. Consider a country that produces only two goods: pineapples and tractors. Suppose it is possible for this country to increase its production of pineapples without producing fewer tractors. In this case, its current output combination is inefficient. 3. Any output combination inside a production possibilities frontier is associated with unused or underutilized resources.