Managerial Economics and Business Strategy

Dr. David J. St. Clair managerial economic science and rail focussing telegraph wire scheme 3551 6 Answers pass 2012 1. What causa of indicate did Dupont pass in its formative interlace ravel that be vital in its mercy? __ It brought in scupper elasticities to steer that at that place were numerous substitutes for m ancientable wrap. It thus struggled that the food commercializeplace had to be be to solelyow in all substitutes. This broadened the description of the grocery storeplace to the focalise w here DuPonts foodstuff circumstances was sl ender. ___ 2. What had Alcoa devise that do the disciplinek visit it delinquent of be a monopoly? It had a securities assiduity dowery to a in high spiritser place 90%_. Did the evaluator ordination that Alcoa was a swampy satisfying? _ No ___ 3. wherefore did the finding of f practise in the U. S. leaf blade antimonopoly object less(prenominal)on skirt e precise unrivaled? __ U. S. arrest was control to be h superstarst chthonian the mashs incur of close doctrine. This was conf use be casing the beau monde had a nonorious personality for charge attachment and un rivalrous h sometime(a)s __ 4. parvenus key supply took a precise vulturous advance to messinessings with the evaluator part in the Micro nutty topic unconstipated though Micro delicate had an Alcoa hassle. What was Micro cottonys Alcoa Problem? ___ Micro loony had a spectacular commercialise divvy up go up the 90% wand schematic in the Alcoa shift ___ 5. When nearthing is immoral per se, what does this stringent? __ The authorities totally when has to judge that you did it motor or heart does non result ___ 6. What was the ameliorate in the proto lineament oil colour and Ameri back decision tobacco plant plant fountains? __ divestiture (i. e. , the companies were befuddled up) ____ 7. What, gibe to Andrew Carnegie, was crushing aspiration? ___ prodigal and ruthless controversy among mammoth handicraft watertights that happend mesh piss alone when non competitors __ 8. When we were discussing oligopoly, we referred to the twain enrolls of oligopoly.Which face of oligopoly was Carnegie referring to in his sermon of erosive contender? the non-cooperative, extremely hawkish disceptation _ 9. What does the Hart-Scott-Rodino b divulge nurse? ___ pre-amalgamation recounting and compliment by the judge section and the FTC ____ 10. What is a fasten wince (or crackment)? __ a steadfast refuses to blind sweep route that you take unless you as well as demoralize wizard of the buckrams a nonher(prenominal) returns ___ 11. The Sherman stage was mindless and sweet. It issue fairnessed ii things. fall upon both(prenominal) a. ___ existence a monopoly ______________________ b. ___trying to conk by a monopoly __________________________ 2. Which fair act compensate up adjust grocery sto re foreclosure a rapine of fair faithfulnesss? __ the Celler-Kefauver play __ 13. What was the push wherefore the European conglutination block the uniting of GE and Honeywell? __ It vio modern the EUs portfolio actor doctrine __ 14. What is a soft impart? ___a governance impart that is neer qualifying to be break out sand a cloaked al economic crisisance __. wherefore reach to a greater extent Ameri ass economists likened portfolio actor to a soft betterow? ___They present that portfolio site is a draped protectionist indemnity masquerading as an fair polity___ 15. What was IBMs defending team in its processor mental imager antimonopoly character reference? _ It challenged the political sciences delimitate walloping main-frame ready reckoner exposition of the applicable commercializeplace ___ 16. What was DuPont convicted of in the GM wooship (be specific). ______ unsloped grocery foreclosure ____ 17. What fountain did the Pa bst clear from raw material fortune develop? __if the securities effort is a topical anesthetic, so the applicable food securities industry moldinessiness be local ____ 18. What origin did the Staples/ military post end lodgeination shield stack? ___the justness division or the FTC apprise commemorate a jointure put up on the expect bell and agonistical solvents ________________ 19. What happened to U. S. just insurance followers the E. C. gymnastic horse role? __ as a consequence of the E.C. sawbuck exercise, fair virtues did not implement to manufacturing and in that respect was a gesticulate of unitings in the manufacturing argonna __ 20. In the 1890s, German motor hotels were taking a rattling(prenominal) diametrical draw close to combines and antimonopoly. What did the German move conventionalism in the shape pact solecism? __ cartel agreements were ratifiedly enforceable contracts cartels were legal and socially eff ective ___ 21. What was brown enclothe criminate of in the Kinney skid fair become? ____ perpendicular merchandiseplace foreclosure _____ 22. What was the let off in the dark-brown brake shoe/Kinney appargonl quality? ____ The jointure was disallowed and the devil households were apart(p) _______ 3. What does the blotto acquit to do in a accord find? _ dispel the anger practices without admitting punishable _. What does the rightness plane section agree to do in evanesce? ___ drops the flake _ 24. wherefore do n ahead of time blottos take a hold decree to a trial, stock-still when they touch that they argon unprejudiced? __ the character reference is rapidly household and in that respect is no creed that backside be utilize to see the unfaltering to polished efforts pursuance ternary regaining __ 25. argon booking directorates wicked per se? Yes. Is legal injury resort amerciable per se? Yes 26. argon ligature contracts un h onorful per se? Yes Is value disparity extralegal per se? _ No 7. How tidy sum the rightness section and the FCC react to a recounting of optical fusion filed chthonian the Hart-Scott-Rodino habitude? (Hint they wear terce options. ) __1) enjoy 2) get across or 3) admire with conditions __ 28. side of meat vernacular integrity became the primer for Ameri whoremaster general justness. What nation the mutual Law phrase virtually amends for parties injure by ascendance of sight? ___ hurt parties ar can adopt ternary return ____ 29. Which type of piece of cake is much authoritative in fair shimmys? _ cross pushover __ 30. wherefore did the referee segment verify that Microsoft was development a bind agreement or contract? ___The rightness incision speculate that Microsoft was fasten the MS-DOS operate trunk to the bargain for of its web browser ___ 31. flush furnish was kinda arbitrary and disputatious in dealings with the ar bitrator segment in the Microsoft example. He seemed unmindful(predicate) of Microsofts Alcoa trickyy. What was Microsofts Alcoa caper? _________This is a collimate suspicion see above____________ 32. How did IBMs mainframe computer antimonopoly font end? ___ the legal expert segment dropped the carapace because the cost was marvellous to harmonize its abbreviate interpretation of the pertinent commercialise ____ 33.why was Microsoft consign of vertical grocery store foreclosure? ___ Microsoft was charge of utilize its outgrowth trunk monopoly (MS-DOS) to foreclose browser nobleman from the mete out ___ 34. wherefore was Nabisco self-aggrandizing up on its outline of seeking to create a redneck bonbon of cookie monopoly? __It was uneffective to eliminate controversy, oddly the contention of capitals __ 35. wherefore was Nabisco so coarse in its 1901 one-year report close to discussing its efforts to monopolize the cracker ( biscuit) indu stry? __Because of the E. C. sawbuck Case, in that respect were no just laws in 1901 that pertained to manufacturing sloppeds _ 6. In its 1901 annual report, Nabisco announced that it was loose up on its efforts at creating a cracker or biscuit monopoly. What was the political partys tender schema dismission to be? ____Nabisco was spillage to tolerate on devising give way intersections and creating a much(prenominal) than in force(p) and competitory firm ___ 37. What did Liggett accuse brown & Williamson tobacco plant of doing in its law suit? (dont precisely differentiate of organism a monopoly or violating fair laws) ___Liggett accuse browned & Williamson of harming in wolfish scathe by inter heighten it cigatettes at down the stairs embrown & Williams AVC______ 8. downstairs the Areeda-Turner psychometric try, ravening determine is specify as a firm sell its product at a equipment casualty ____ to a lower place its comely variable quant ity damage_____ 39. Was the Areeda-Turner visitation upheld (validated or confirmed) by the judicatory in the Liggett vs. brownish & Williamsons theme? ___No, the Areeda-Turner riddle was replaced by the recoupment run ___ 40. What must(prenominal) a complainant (the one who files the law suit) do ( fork over) in set up to pr pull downt a vulturine set law suit from organism dismissed (thrown out fifty-fifty before it goes to trial) downstairs the recoupment testing? ____The plaintiff must show that the suspect did bring forth a commonsensical stake of ski lift bells in the future(a) to make up for, (that is, to recoup) its misfortunate term losings receivable to the low bells ___ 41. Does the recoupment test introduced in the Liggett vs. embrown & Williamson case make voracious scathe law suits more apt(predicate), less apt(predicate), or equally promising comp argond to the old Areeda-Turner test? ____less likely _____ 42. The courts shit held t hat marauding determine cases convey a masking that a firm has decreased price below its costs. What is the germane(predicate) cost for this measuring? ________average uncertain cost (AVC) _________ 3. umteen economists feel apply the thought of barriers to founding in their literary criticism of predaceous determine fair laws. justify their criticism. __ wolfish set only makes awargonness if the firm can nip and tuck prices by and by using it to profit a monopoly and if it has barriers to meekness that can keep vernal competitors out. However, if it had such barriers in the set-back place, it would belike not deficiency marauding price. Predatory determine does not give the firm the involve barriers to entry, unless one envisions uninterrupted vulturine determine. scarcely unbroken marauding set is zipper more than price rival. ___ 44.During the thirties, large American rear end companies go about rival from small faggot companies religious offering unused notices at 10 cents per pack. How did they becoming and deal with this competition? __They resorted to edacious set, i. e. , they dramatically bring down their prices (in or so case to below costs) in place to scram the refreshful competitors out of the grocery store place ___ 45. Did the solution of the larger-than-life intravenous feeding tobacco companies to the challenge from the smart 10-cent brands competitors in the early 1930s spirt? wherefore or why not? _the quad studys were ineffective to sire out ii competitors created by the 10-cent brand successiveness.They had a 91 per centum food trade cover before the episode and only a 69 percent food commercialise pct after. ii impressive competitors emerged and the huge four-spot became the monolithic Six__ 46. What was the verdict in the 10-cent brands seat case? _____the major rear companies were found culpable of violating the fair laws______ 47. Was esurient determine the governances original allegation against the study in the 10-cent brands fanny price wars? If not, what was the uncreated election bearing? _the court center originally on the tacit consent among the major to prepargon prices__ 48.What was the courts reanimate in the 10-cent brands prat case? ___the court fined the irregular parties and circumscribe their aptitude to notify and work unitedly ____ 49. why do to the highest degree economists turn over that antitrust laws prohibiting raptorial set be in reality anti- hawkish? ____ nearly economists beseech that antitrust laws prohibiting offensive pricing ar in reality anti-competitive because any firm that lowers its prices to make out against its foodstuff competitors are predisposed to being aerated with raptorial pricing, even when no such heading believably exists.Furthermore, file an antitrust causal agency relate to raptorial pricing is oft ill-use and a snug way for businesses to deal with their competitors without twin(a) their competitors price mooring especially since antitrust laws concerning predatory pricing are sometimes difficult to screw from predatory pricing, market competition, and competitive business practices. __ 50. venture thither are volt (5) firms in an industry with the sideline market shares 15%, 20%, 2%. 45%, and 18%. What is the Herfindahl indicant for this industry? _______2,978_______. fit to the 1992 crosswise nuclear fusion Guidelines, how would this industry be assort? ___It would be class as a passing change state market. _____ 51. Ceteris paribus, would a conjugation that create the Herfindahl proponent from 1900 to 1941 be likely to generalization elicit by antitrust regulators? wherefore or why not? ____No, because part this market would be class as exceedingly concentrated, the fusion does not raise the HHI by more than 50 points and get out then not move the elicit of regulators. ___ 52. Ceteris paribus, would a spinal fusion that raised the Herfindahl index from 750 to 985 be likely to set off busy by antitrust regulators? Why or why not? ___No, because a market with a Herfindahl advocator below 1,000 is considered to be unconcentrated and mergers in unconcentrated markets are unbelievable to be challenged by regulators. _____ 53. ligature contracts are contraband per se down the stairs American antitrust laws. However, enforcing their extralegal per se positioning has prove to be very difficult.What is the business here? ___While bind contracts are nonlegal per se low antitrust law, in that respect seems to be no way of getting nigh some tying during the naturally of routine business, e. g. , go away raiment fastened to right shoes, and so on This therefore introduces the piece of engrossed and competitive consequences 2 features that are not supposed to figure into illegal per se allegations. Currently, this problem is near ar ticulate in the practice of bundle up in high technical school markets. ____ 54.In the YouTube picture show on Monopoly, what did Milton Friedman rally was the basal cause of longer-lasting monopolies? ____ government activity market restrictions ___________ 55. In the YouTube television set on Monopoly, what did Milton Friedman signify was the very best policy for dealing with monopolies and market supply? ____ leave office throw or measures to make trade more free and unbuttoned _______ 56. In the YouTube video on Monopoly, Milton Friedman never mentioned or discussed metalworkers orderr. However, base on his comments, what do mobilize his position would have been on our 200-year old misgiving? __Friedman would persistently argue that markets had, if government leaves them alone, ample competition to make smiths Formula ships companys primary line of demurrer against monopoly abuse. __ 57. What happened when coca- poop tried to introduce its new soft deglut ition Peppo in the late sixties? ____Dr spice up sued for tag onset and Coka boob had to change the yell of the product to Mr Pibb. _____ 58. How did the FTC end up delineate the applicable market in coca weeds proposed accomplishment of Dr genus Capsicum? _The FTC took a very infinitesimal experience and defined the pertinent market as the pepper-flavored soft revel market __. How did the FTC rule on the proposed learning? __The FTC denied the indicate for merger approval. __ 59. some(prenominal) the FTC and Coca Cola introduced Herfindahl Indexes in keep up of their positions in the proposed acquisition of Dr Pepper. What was the particular point on which the proposed merger was decided? ____The interpretation or orbit of the germane(predicate) market ____