AGEC 440 Exam 2 Questions and
Answers Graded A+
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
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, 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
