Briefly review the history of antitrust legislation in the United States.
What will be an ideal response?
The Sherman Act of 1890 prohibited all contracts, combinations, and conspiracies in restraint of trade and monopolization in interstate and foreign trade.
The Clayton Act of 1914 prohibited price discrimination, “exclusive contracts,” “tying contracts,” acquisition by one corporation of another’s shares if it reduces competition, and directors of one company from sitting on the board of a competitor’s company.
The Federal Trade Commission Act of 1914 established the FTC as an independent agency with authority to prosecute unfair competition and to prevent false and misleading advertising.
The Robinson-Patman Act of 1936 prohibited special discounts and other discriminatory acts.
The Celler-Kefauver Act of 1950 prohibited any corporation from acquiring the assets of another where the effect is to reduce competition substantially.
The Tunney Act of 1974 ensured that settlements between antitrust defendants and the government are in the public interest by requiring the government to publish the terms of each settlement, along with a statement of its likely competitive impact.
The Hart-Scott-Rodino Act of 1976 required companies to notify the DOJ and the FTC before completing mergers and acquisitions and establishes a 30-day post-notification waiting period.
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Studies suggest that brand loyalty is based primarily on real differences among competing products, suggesting that persuasive advertising is an ineffective means to maintain or increase market share
Indicate whether the statement is true or false
The PPP index:
A. describes the overall inequality present in one country compared to another. B. describes the overall differences in poverty levels between countries. C. describes the overall difference in prices between countries. D. None of these is true.
Nancy loves to landscape her yard, but her neighbor Tom places a low value on his landscaping. When Tom's grass is neglected and gets long, Nancy will mow for Tom. This is an example of: a. the fallacy of composition
b. a pollution tax. c. a private solution to a negative externality problem. d. how lazy Tom is.
The idea of comparative advantage is closely related to
A. production efficiency. B. the concept absolute advantage. C. using the worker with the most diverse sets of skills. D. the concept of opportunity cost.