AGEC 440 Exam 2 Questions With Correct
Answers
Theoretical motivations for IO theory - CORRECT ANSWER✔✔-
| | | | | | |
deviations from microeconomic theory
| | | |
-limited information
|
-government actions |
-barriers to entry| |
-transaction costs |
-firm maximizing behavior
| |
Industry motivations for IO theory - CORRECT ANSWER✔✔-increase
| | | | | | | |
concern for the competitive conditions of agricultural marketplace
| | | | | | |
-Mergers and acquisitions
| |
-concentration
-antitrust
three anti trust laws - CORRECT ANSWER✔✔--prohibit conspiracies to
| | | | | | | | |
deny market access or suppress competition
| | | | |
-prohibits the use of predatory and/or exclusionary conduct to acquire
| | | | | | | | | |
or maintain a monopoly/monopolist position
| | | |
, -prohibit mergers and acquisitions that lessen competition
| | | | | |
-all point at same philosophy that antitrust is made to protect
| | | | | | | | | | |
competitive process but not competitors | | | |
-markets will never be fully competitive but we are going to try and
| | | | | | | | | | | | |
make it as competitive as possible
| | | | |
prohibit conspiracies to deny market access - CORRECT ANSWER✔✔-ex:
| | | | | | | |
ADM price fixing
| | |
conspiracy behavior violates | |
prohibits the use of predatory and/or exclusionary conduct to acquire or
| | | | | | | | | |
|maintain a monopoly/monopolist position - CORRECT ANSWER✔✔--
| | | | | |
food manufacturer preventing food retailer from stocking competitor
| | | | | | | |
product (exclusionary conduct)
| |
-retailers avoid term loss leader because it comes across predatory by
| | | | | | | | | | |
driving other retailers out of the market
| | | | | |
prohibit mergers and acquisitions that lessen competition - CORRECT
| | | | | | | | |
ANSWER✔✔--by being bigger there are also efficiency benefits. | | | | | | | |
Increasing scale to reductions in average cost, and you bring benefit to
| | | | | | | | | | | |
consumer through price, you are not lessening competition
| | | | | | | |
-monsanto to acquire dekalb genetics to make a dominant supplier of
| | | | | | | | | | |
seed technology
|
Answers
Theoretical motivations for IO theory - CORRECT ANSWER✔✔-
| | | | | | |
deviations from microeconomic theory
| | | |
-limited information
|
-government actions |
-barriers to entry| |
-transaction costs |
-firm maximizing behavior
| |
Industry motivations for IO theory - CORRECT ANSWER✔✔-increase
| | | | | | | |
concern for the competitive conditions of agricultural marketplace
| | | | | | |
-Mergers and acquisitions
| |
-concentration
-antitrust
three anti trust laws - CORRECT ANSWER✔✔--prohibit conspiracies to
| | | | | | | | |
deny market access or suppress competition
| | | | |
-prohibits the use of predatory and/or exclusionary conduct to acquire
| | | | | | | | | |
or maintain a monopoly/monopolist position
| | | |
, -prohibit mergers and acquisitions that lessen competition
| | | | | |
-all point at same philosophy that antitrust is made to protect
| | | | | | | | | | |
competitive process but not competitors | | | |
-markets will never be fully competitive but we are going to try and
| | | | | | | | | | | | |
make it as competitive as possible
| | | | |
prohibit conspiracies to deny market access - CORRECT ANSWER✔✔-ex:
| | | | | | | |
ADM price fixing
| | |
conspiracy behavior violates | |
prohibits the use of predatory and/or exclusionary conduct to acquire or
| | | | | | | | | |
|maintain a monopoly/monopolist position - CORRECT ANSWER✔✔--
| | | | | |
food manufacturer preventing food retailer from stocking competitor
| | | | | | | |
product (exclusionary conduct)
| |
-retailers avoid term loss leader because it comes across predatory by
| | | | | | | | | | |
driving other retailers out of the market
| | | | | |
prohibit mergers and acquisitions that lessen competition - CORRECT
| | | | | | | | |
ANSWER✔✔--by being bigger there are also efficiency benefits. | | | | | | | |
Increasing scale to reductions in average cost, and you bring benefit to
| | | | | | | | | | | |
consumer through price, you are not lessening competition
| | | | | | | |
-monsanto to acquire dekalb genetics to make a dominant supplier of
| | | | | | | | | | |
seed technology
|
