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Cross 9e TBB Ch27

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Cross 9e TBB Ch27
Chapter 27

Antitrust Law

N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.

N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.

TRUE/FALSE QUESTIONS

1. The purpose of antitrust law is to reduce competition.

ANSWER: F PAGES: Introduction TYPE: N BUSPROG: Analytic AICPA: BB-Legal

2. Any activity that substantially affects interstate commerce falls outside the scope of antitrust laws.

ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

3. Market power is the ability of a firm to enter a given market.

ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

4. A price-fixing agreement that is reasonable does not violate antitrust law.

ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

5. A horizontal restraint is any agreement that in some way restrains competition between rival firms competing in the same market.

answer: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal

6. Any agreement that restricts output among competitors is a per se violation of Section 1 of the Sherman Act.

ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

7. A concentrated industry is one in which either a single firm or a small number of firms carry out the separate functions of the chain of production.

ANSWER: F PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal

8. A territorial or customer restriction is currently considered a per se violation of antitrust law.

answer: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal

9. The possession of monopoly power is the only element needed to establish the offense of monopolization.

ANSWER: F PAGES: Section 3 TYPE: + BUSPROG: Analytic AICPA: BB-Legal

10. A firm may be a monopolist even though it is not the sole seller in a market.
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