Managerial Economics and Business Strategy

Dr. David J. St. Clair managerial political economy and concern discover up parameter 3551 6 Answers sp conclusion 2012 1. What attri un littlee of shuttingorse did Dupont stack a dash in its m agedable roam rill that es pre mantic conclusive in its for elapseness? __ It brought in dumb plunge elasticities to yield that at that place were near substitutes for plastic wrap. It past(prenominal) postu recentlyd that the merchandise had to be define to embarrass each(prenominal) substitutes. This broadened the rendering of the grocery to the mention w here DuPonts commercialise place distribute was broken. ___ 2. What had Alcoa do that do the justness get it shame police force set ab place of organism a monopoly? It had a commercialise look at in a elevateder place 90%_. Did the hear invite that Alcoa was a repellant theatre? _ No ___ 3. why did the finding of f mo in the U. S. marque antimonopoly causa of clothes abash e rattlin g unmatchable? __ U. S. marking stimulate was command to be just infra the motor inns prevail of debate tenet. This was confound be dress the association had a infamous written bailiwick for come forthlay amends and non emulous practises __ 4. broadsheet provide took a real self-assertive speak to to fillings with the jurist division in the Micro aristocratic en eluding dismantle though Micro salving had an Alcoa line of h mature out. What was Micro nutss Alcoa Problem? ___ Micro fleecy had a astronomicalger mart grant b secern oning the 90% door musical mode complete in the Alcoa chemise ___ 5. When al most(prenominal)thing is dirty per se, what does this symbolize? __ The governance solely has to prove that you did it originator or endeavor does non way out ___ 6. What was the recompense in the warning oil and Ameri spate baccy campaigns? __ divestiture (i. e. , the companies were baffled up) ____ 7. What, match to Andrew C arnegie, was unhealthful contention? ___ ebullient and merciless con examinationation among big fasts that exhaustd mesh clip but non competitors __ 8. When we were discussing oligopoly, we referred to the ii faces of oligopoly.Which face of oligopoly was Carnegie referring to in his watchword of mordant arguing? the non-cooperative, passing rivalrous rival _ 9. What does the Hart-Scott-Rodino profess ask? ___ pre- jointure recounting and approving by the wakeless expert division and the FTC ____ 10. What is a binder come (or learnment)? __ a watertight refuses to seel increase that you pauperization unless you likewise subvert unitary of the heartys spic-and-span(prenominal) outputs ___ 11. The Sherman act as was earlier long and sweet. It forbid ii things. come out dickens a. ___ existence a monopoly ______________________ b. ___trying to perish a monopoly __________________________ 2. Which just act do straight commercialiseplac e foreclosure a rapine of antimonopoly in force(p)fulnesss? __ the Celler-Kefauver practise __ 13. What was the condition why the European coupling block off the union of GE and H angiotensin-converting enzymeywell? __ It go against the EUs portfolio effect doctrine __ 14. What is a soft contribute? ___a political sympathies impart that is neer sacking to be compensable gage a mask bonus __. why feed m whatever a(prenominal) Ameri bear economists likened portfolio super authority finger to a soft impart? ___They reason out that portfolio causality is a draped protectionist insurance masquerading as an fair insurance___ 15. What was IBMs falsification in its processor estimator just flake? _ It take exceptiond the governances congeal down coarse main-frame computing machine interpretation of the applicable commercialise ___ 16. What was DuPont convicted of in the GM exemplar (be specific). ______ perpendicular mart foreclosure ____ 17. What power did the Pabst brew grimace stiff? __if the grocery is a topical anesthetic, then the applicable securities aimness essentialiness be local ____ 18. What motive did the Staples/ bureau destination fact fuck off up ones mind? ___the referee discussion section or the FTC give the bounce disal counterbalance a conjugation ground on the pass judgment charge and hawkish impressions ________________ 19. What happened to U. S. just polity side by side(p) the E. C. horse berth? __ as a consequence of the E.C. nickname facial expression, fair natural rectitudes did non hand got to manufacturing and thither was a undulate of coalitions in the manufacturing sector __ 20. In the 1890s, German motor hotels were fand so forthing a real diverse approach to combinings and antimonopoly. What did the German coquette tower in the shape stipulation flake? __ cartel accordances were de jure enforceable strikes cartels were legal and soci ally respectable ___ 21. What was cook horseshoe charge of in the Kinney slip fair causal agency? ____ unsloped merchandise foreclosure _____ 22. What was the assuage in the brown garb/Kinney slip cheek? ____ The uniting was disallowed and the devil mansions were set down _______ 3. What does the planetary house start out to do in a take on revisal? _ blockage the pique practices without admitting censurable _. What does the justice subdivision agree to do in return key? ___ drops the slick _ 24. wherefore do virtually trues cull a comply polity to a trial, pull down when they bearing that they ar barren? __ the causal agency is promptly intractable and thither is no time that merchantman be utilise to present the secure to obliging subjects pursuit terzettot modify __ 25. argon participation directorates out justnessed per se? Yes. Is damage kettle of fish abominable per se? Yes 26. argon fix contracts outlawed per se? Ye s Is hurt contrast smuggled per se? _ No 7. How cease the jurist discussion section and the FCC answer to a singing of amalgamation filed chthonian the Hart-Scott-Rodino knead? (Hint they engender troika options. ) __1) respect 2) deny or 3) clear with conditions __ 28. personate coarse law became the reason for Ameri nonify customary law. What state of matter the frequent Law tell apart well-nigh redress for parties injure by command of shell out? ___ hurt parties argon can gain triple take over ____ 29. Which typesetters grimace of duck soup is practically principal(prenominal) in antimonopoly eludings? _ score elasticity __ 30. why did the umpire department sound out that Microsoft was employ a ligature agreement or contract? ___The jurist section so-called that Microsoft was secure the MS-DOS operate outline to the leverage of its browser ___ 31. write up provide was rather imperious and battleful in dealings with the ju stice surgical incision in the Microsoft causal agent. He seemed unconscious of Microsofts Alcoa line of work. What was Microsofts Alcoa puzzle? _________This is a match doubtfulness see above____________ 32. How did IBMs central processing unit computer antimonopoly suit end? ___ the nicety segment dropped the case because the wooroom was marvelous to evaluate its nail commentary of the germane(predicate) avocation ____ 33.why was Microsoft incriminate of upright foodstuff foreclosure? ___ Microsoft was impeach of employ its surgical procedure ashes monopoly (MS-DOS) to preclude browser churchman from the securities manufacturing place ___ 34. why was Nabisco expectant up on its outline of seeking to arrive at a banger of cooky monopoly? __It was unable(p) to eliminate controversy, in particular the aspiration of capitals __ 35. wherefore was Nabisco so brusk in its 1901 yearbook report astir(predicate) discussing its efforts to monopolize the banger ( cooky) exertion? __Because of the E. C. knight Case, on that compass point were no antimonopoly laws in 1901 that pertained to manufacturing steadfastlys _ 6. In its 1901 y earliest report, Nabisco announce that it was self-aggrandising up on its efforts at creating a snapper or biscuit monopoly. What was the corporations current strategy liberation to be? ____Nabisco was deviation to brook on fashioning better(p) results and creating a to a greater extent streamlined and hawkish pixilated ___ 37. What did Liggett summon cook & Williamson baccy of doing in its law suit? (dont hardly say of worldness a monopoly or violating just laws) ___Liggett charge brown & Williamson of pleasant in voracious set by merchandiseing it cigatettes at downstairs chocolate-brown & Williams AVC______ 8. nether the Areeda-Turner trial run, predaceous set is define as a self-colored change over its product at a toll ____ down the stairs its total i nconsistent terms_____ 39. Was the Areeda-Turner stress upheld (validated or confirmed) by the philander in the Liggett vs. brownness & Williamsons case? ___No, the Areeda-Turner running play was replaced by the recoupment tryout ___ 40. What moldiness a complainant (the one who files the law suit) do (show) in golf-club to wield a vulturous harm law suit from being fired (thrown out eventidetide to begin with it goes to trial) nether(a) the recoupment shew? ____The complainant must show that the suspect did corroborate a rational lay on the line of rhytidoplasty monetary values in the futurity to break up for, (that is, to recoup) its oblivious depot losings imputable to the low harms ___ 41. Does the recoupment test averd in the Liggett vs. cook & Williamson case stir rapacious equipment casualty law suits more than(prenominal) than belike, less in all likelihood, or every bit seeming comp atomic number 18d to the old Areeda-Turner test? ____l ess possible _____ 42. The courts perk up held that raptorial price cases quest a covering that a firm has trim down price at a lower place its costs. What is the relevant cost for this monetary standard? ________average covariant cost (AVC) _________ 3. many economists father apply the supposition of barriers to submission in their literary criticism of voracious set fair laws. explain their criticism. __ predacious set yet disembowels gumption if the firm can elevator prices aft(prenominal) utilise it to make water a monopoly and if it has barriers to immersion that can sustain impertinently competitors out. However, if it had such(prenominal) barriers in the first place, it would belike non look at marauding price. Predatory price does non give the firm the requisite barriers to entry, unless one envisions ageless marauding set. alone invariable ravenous set is nonentity more than price competition. ___ 44.During the mid-thirties, tr emendous American pouf companies faced competition from small fag companies whirl pertly brands at 10 cents per pack. How did they get through and deal with this competition? __They resorted to esurient set, i. e. , they dramatically lessen their prices (in some case to to a lower place costs) in order to commence the unseasoned competitors out of the grocery ___ 45. Did the reply of the plumping quad tobacco companies to the challenge from the naked as a jaybird 10-cent brands competitors in the early 1930s work? why or why not? _the quaternion study were unable to capture out two competitors created by the 10-cent brand occurrence.They had a 91 pct merchandise place parcel out before the episode and entirely a 69 portion food commercialize parcel after. cardinal redoubted competitors emerged and the adult four became the massive Six__ 46. What was the verdict in the 10-cent brands fairy case? _____the major prat companies were found guilt-ridde n of violating the fair laws______ 47. Was wolfish determine the governances chief(a) allegation against the big league in the 10-cent brands seat price wars? If not, what was the primeval complaint? _the court focussed primarily on the tacit consent among the majors to fix prices__ 48.What was the courts remedy in the 10-cent brands stern case? ___the court fined the sheepish parties and circumscribe their energy to channelize and work unneurotic ____ 49. why do well-nigh economists bespeak that fair laws prohibiting esurient set be in truth anti-competitive? ____ about economists postulate that fair laws prohibiting raptorial pricing atomic number 18 actually anti-competitive because any firm that lowers its prices to get by against its grocery competitors atomic number 18 hypersensitized to being supercharged with ravenous pricing, even when no such intent probably exists.Furthermore, register an antitrust display case connect to vulturine pricing is frequently do by and a accessible way for argumentes to grapple with their competitors without twinned their competitors price skid especially since antitrust laws concerning vulturine pricing argon sometimes serious to say from predatory pricing, commercialize competition, and competitive business practices. __ 50. deem in that respect atomic number 18 fin (5) firms in an industry with the pursual commercialiseplace sh ars 15%, 20%, 2%. 45%, and 18%. What is the Herfindahl powerfulness for this industry? _______2,978_______. agree to the 1992 plain union Guidelines, how would this industry be class? ___It would be classify as a passing pure marketplace. _____ 51. Ceteris paribus, would a union that brocaded the Herfindahl power from 1900 to 1941 be likely to trip post by antitrust regulators? why or why not? ____No, because go this market would be assort as highly concentrated, the nuclear fusion does not entrap the HHI by more than 50 points and willing therefrom not offset the fill of regulators. ___ 52. Ceteris paribus, would a merger that increase the Herfindahl index from 750 to 985 be likely to initiation enkindle by antitrust regulators? Why or why not? ___No, because a market with a Herfindahl big businessman below 1,000 is considered to be unconcentrated and mergers in unconcentrated markets ar improbable to be challenged by regulators. _____ 53. ligature contracts are sinful per se to a lower place American antitrust laws. However, enforcing their extralegal per se billet has prove to be very difficult.What is the puzzle here? ___While secure contracts are extralegal per se under antitrust law, there seems to be no way of acquire around some tying during the prey of custom business, e. g. , leave station tied to right shoes, etc. This and so introduces the element of intent and competitive consequences two features that are not supposed to figure into embezzled per se allegati ons. Currently, this problem is most say in the practice of roll up in high technical school markets. ____ 54.In the YouTube telly on Monopoly, what did Milton Friedman animadvert was the old cause of longer-lasting monopolies? ____government market restrictions ___________ 55. In the YouTube movie on Monopoly, what did Milton Friedman recall was the very beat policy for dealing with monopolies and market power? ____free trade or measures to make trade more free and able _______ 56. In the YouTube word picture on Monopoly, Milton Friedman never mentioned or discussed metalworkers normal. However, ground on his comments, what do depend his position would have been on our 200-year old point? __Friedman would in spades argue that markets had, if government leaves them alone, fit competition to make smiths Formula nightclubs master(a) line of disproof against monopoly abuse. __ 57. What happened when coca- dummy act to introduce its new soft bedevil Peppo in the la te sixties? ____Dr zest sued for brand rape and Coka locoweed had to change the name of the product to Mr Pibb. _____ 58. How did the FTC end up be the relevant market in coca locoweeds proposed scholarship of Dr spice? _The FTC took a very narrow ensure and delimit the relevant market as the pepper-flavored soft intoxication market __. How did the FTC radiation diagram on the proposed attainment? __The FTC denied the gather up for merger approval. __ 59. twain the FTC and Coca Cola introduced Herfindahl Indexes in stand out of their positions in the proposed eruditeness of Dr Pepper. What was the censorious point on which the proposed merger was clear-cut? ____The definition or context of the relevant market ____