Antitrust Laws and Government Regulation of Monopolies quiz #1 Flashcards
Antitrust Laws and Government Regulation of Monopolies quiz #1
You can tap to flip the card.
Control buttons has been changed to "navigation" mode.
1/10Skip to main content
Which two laws forbid monopolies or other actions that cause restraint in trade? The Sherman Act and the Clayton Act are two key laws that forbid monopolies and actions that restrain trade. Which of the following methods would help society deal with a monopoly? Society can deal with a monopoly by enforcing antitrust laws or by regulating the monopoly through price ceilings, such as setting socially optimal or fair return prices. What is the most controversial aspect of antitrust regulation? The most controversial aspect of antitrust regulation is determining when business practices or mergers actually reduce competition and harm consumers. What is the purpose of federal antitrust laws? The purpose of federal antitrust laws is to prevent monopolies and promote competition by prohibiting practices that restrain trade or reduce market competition. Which of the following best states the purpose of Wilson’s anti-trust legislation? Wilson’s anti-trust legislation aimed to limit the power of monopolies and promote fair competition in the marketplace. Which of these is not a violation of Sherman antitrust laws? A company achieving a monopoly through superior product or efficiency, without collusion or unfair practices, is not a violation of Sherman antitrust laws. Under antitrust laws, what actions are prohibited? Under antitrust laws, actions such as collusion, price fixing, mergers that reduce competition, and certain types of price discrimination are prohibited. Antitrust laws make which of the following illegal? Antitrust laws make illegal activities such as collusion between firms, price fixing, and mergers that substantially reduce competition. Who initiates lawsuits under antitrust laws? Lawsuits under antitrust laws can be initiated by the federal government, state governments, or private parties affected by anticompetitive practices. Antitrust policy is designed to Antitrust policy is designed to promote competition and prevent monopolies from gaining excessive market power.
03:58
