(answered) - 1. The Sherman and Clayton Acts The Clayton Act of 1914



(answered) – 1. The Sherman and Clayton Acts The Clayton Act of 1914DescriptionSolution downloadThe QuestionNeed assistance on assignment attached.Please either provide coordinates or show lines on graph problems.Appreciate that greatly.Thank you ?1. The Sherman and Clayton ActsThe Clayton Act of 1914 classifies several business practices as illegal, including price discriminationand tying contracts, if they “substantially lessen competition or tend to create a monopoly.”The Clayton Act of 1914 is an example of which of the following?Antitrust lawsPrice regulations2. The Clayton and Celler-Kefauver ActsWhich of the following activities are prohibited by the Clayton Act when they lead to less competition?A buyer is forced to buy multiple products from a producer in order to get a desired product.Each of these answers is correct.A director from one business sits on the board of a competing firm.A firm acquires a major percentage of the stocks of a competing firm.3. The Herfindahl indexSuppose that three firms make up the entire wig manufacturing industry. One has a 40% market share,and the other two have a 30% market share each.The Herfindahl index of this industry is _________ (a.10,000 b.6,000 c.3,400 d.4,000 e.3,000).A new firm, Mane Attraction, enters the wig manufacturing industry and immediately captures a 15%share of the market. This would cause the Herfindahl index for the industry to ___________ (a.fall b.risec.remain the same).The largest possible value of the Herfindahl index is 10,000 because:An industry with an index higher than 10,000 is automatically regulated by the Justice DepartmentAn index of 10,000 corresponds to a monopoly firm with 100% market shareAn index of 10,000 corresponds to 100 firms with a 1% market share each4. 90-60-30, Herfindahl, and the FTCSuppose that in the market for soft drinks, market share is divided among six companies in thefollowing manner:MarketFirmShareCoca-Cola90%Pepsi-Cola3%Cadbury2%Cott2%National2%BeverageRoyal Crown1%Based on the Herfindahl index of the market for soft drinks, the FTC would __________ (a.challengeb.encourage c.not challenge) a merger between Cadbury and National Beverage.5. Three types of mergersCategorize each of the following examples as a horizontal, vertical, or conglomerate merger.HorizontalA retail coffee chain merges with a sportsequipment manufacturer.A newspaper publisher merges with a paper andpulp mill.In 1999, two large oil companies merged to form asingle company.6. Network monopoliesVerticalConglomerateA lock-in effect ___________ (a.increases b.decreases) the costs of switching from one network good toanother network good.How do network externalities help a monopoly retain its market power?If there are strong network externalities associated with a good, other goods are poor substitutesfor it.By exploiting network externalities, a firm can become a natural monopoly.Goods with network externalities are more likely to receive a government patent.7. When fewer firms are better IISecure Corp is a home security provider. In the long run, Secure Corp can provide home security for20,000 homes each month at a total cost of $700,000, home security for 30,000 homes at a total costof $900,000, or home security for 40,000 homes at a total cost of $1,000,000.Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curveat outputs of 20,000, 30,000, and 40,000 homes.Suppose that there are 40,000 households that purchase home security in this area. All of SecureCorp’s potential rivals face the same long-run average cost curve.True or False: Because Secure Corp faces falling long-run average cost over the relevant

(answered) – 1. The Sherman and Clayton Acts The Clayton Act of 1914


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