1. A conglomerate merger takes place when: (Points: 5)
a firm acquires a competitor.
similar firms agree to compete.
a firm integrates its production backward toward its source of supply or forward in its marketing chain.
a firm buys another firm unrelated to the original firm's business.
2. You can find the MRP by multiplying marginal physical product by price for: (Points: 5)
both the perfect competitor and the imperfect competitor.
neither the perfect competitor nor the imperfect competitor.
only the perfect competitor.
only the imperfect competitor.
3. The additional output that one additional input of labor is responsible for is its __________ product. (Points: 5)
marginal revenue
marginal physical
average revenue
average physical
4. The firm's demand schedule for a resource is its __________ schedule. (Points: 5)
MPP
MRP
total revenue
output
5. As output rises: (Points: 5)
both marginal revenue product and marginal physical product rise.
both marginal revenue product and marginal physical product fall.
marginal revenue product rises and marginal physical product falls.
marginal revenue product rises and marginal physical product rises.
6. If the price that a perfect competitor received for his or her final product doubled, the firm's MRP schedule would: (Points: 5)
rise.
fall.
double at each price.
stay about the same.
7. As output rises, the MRP of an imperfect competitor will __________ that of a perfect competitor. (Points: 5)
rise faster than
fall faster than
rise at the same rate as
fall at the same rate as
8. The Standard Oil trust: (Points: 5)
was broken up in 1946.
was controlled by several foreign nations.
forced its rivals out of business.
was put together by the U.S. government.
9. The Clayton Act prohibited: (Points: 5)
interlocking directorates.
all forms of monopoly.
foreign control of U.S. corporations.
false and deceptive advertising.
10. The conventional merger is the __________ merger. (Points: 5)
horizontal
vertical
conglomerate
diversifying
11. Each of the following is an advantage of forming a conglomerate EXCEPT: (Points: 5)
tax advantages.
forming a big company.
diversification.
accumulation of power within two or three closely related industries.
12. A key passage of the __________ Act stated that "every contract, combination in form of trust or otherwise, in restraint of commerce among the several states, or with foreign nations, is hereby declared illegal." (Points: 5)
Clayton
FTC
DuPont
Sherman
13. The Microsoft case ended with a(n): (Points: 5)
clear-cut win for the federal government.
compromise settlement between Microsoft and the federal government.
guilty plea by Microsoft, but no breakup of the company.
abandonment of the case by the federal government.
14. In the 1960s, about 80% of the mergers were of the __________ variety. (Points: 5)
horizontal
vertical
conglomerate
conventional
15. Each of the following industries was deregulated during the last 30 years EXCEPT: (Points: 5)
the airlines.
trucking.
banking.
radio and TV.
16. A merger of a firm and its supplier is called a __________ merger. (Points: 5)
vertical
horizontal
conglomerate
direct
17. A horizontal merger takes place when: (Points: 5)
a firm acquires a competitor.
similar firms agree to compete.
firms in different industries merge.
a firm diversifies by merging with a foreign firm.
18. The Sherman Act of 1890: (Points: 5)
exempted labor unions from antitrust prosecution.
included stringent enforcement provisions.
outlawed unfair business practices to exclude rivals from selling in markets.
outlawed all monopolies.
19. A conglomerate merger involves combining firms: (Points: 5)
involved in the same industry.
that are based in different countries.
from unrelated industries.
that control various stages of the production of a particular good from raw materials to finished manufacture.
20. Which statement is true? (Points: 5)
Microsoft is subject to American antitrust laws, but not those of Europe, Asia, or elsewhere.
Microsoft has never been involved in an antitrust suit.
The European Commission fined Microsoft over $600 billion for its anticompetitive behavior.
Microsoft has always gone out of its way to be helpful to its competitors.
