Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 21, Problem 2RQ
To determine
Antitrust scheme and when the merger is permitted.
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The table shows market shares of firms in hypothetical industries. Assume these are distinct industries with no buyer-seller relationships or competition among
them. Those who focus on monopoly structure would most likely assert that there is a violation of antitrust law in which industry?
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10. Questionable business practices according to antitrust agencies
Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or tying.
Predatory
Pricing
Scenario
SnapFace is a firm that manufactures polaroid cameras. Suppose SnapFace sells its polaroid
cameras to online retailers for $159 each and requires those online retailers to charge at least
$179 to shoppers for each polaroid camera.
Breezy Hut is the only firm producing air conditioners. It costs $1,000 to produce one air
conditioner, and Breezy Hut sells each air conditioner for $1,200. After Gregale, a new firm with
the same costs as Breezy Hut, enters the market for air conditioners, Breezy Hut starts selling its
air conditioners for a price of $550.
Wally's sells a wide variety of skateboards to retail sporting good outlets. Wally's recently rolled out
two new skateboards: a popular Dallas II and a much less popular Drydeck 3. Wally's requires
sporting good…
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Chapter 21 Solutions
Economics (Irwin Economics)
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- TRUE AND FALSE QUESTIONS According to para 3 of article 12 of TCC a person who pretends that he/she runs a commercial enterprise or who enters into contracts as if he/she is a shareholder of a company which does not exist legally is qualified as a merchant. Article 16 of TCC refers to legal person merchants under three groups. Legal person merchants identified under article 16 are numerus clauses. Where there are no applicable regulations for the disputes as to commercial transaction, commercial usage and custom find an application even if merchants do not actually know them Although a legal representative who operates the commercial enterprise on behalf of the minor does not have a status of merchant, he is eligible to appoint a commercial representative Regarding the authorization of the commercial representative, apart from that the authorization of the representative is registered with the commercial register (art. 547/2 of TCO), there is no formal requirement. Commercial…arrow_forward9a and 9b?arrow_forwardHow would you expect antitrust authorities to react to the following? a. A proposed merger of Ford and General Motors. O They would block this horizontal merger because it violates Section 7 of the Clayton Act. O They would block this horizontal merger because it violates Section 1 of the Sherman Act. O They would allow this horizontal merger unless both firms had very large market shares and the resultant merger would substantially lessen competition. b. Evidence of secret meetings by contractors to rig bids for highway construction projects. O They would allow this. O They would charge these firms with price-fixing, which violates Section 7 of the Clayton Act. O They would charge these firms with price-fixing, which violates Section 1 of the Sherman Act. C. A proposed merger of a large shoe manufacturer and a chain of retail shoe stores. O They would block this merger because it violates Section 7 of the Clayton Act. O They would block this merger because it violates Section 1 of the…arrow_forward
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