Name: 
 

BLW 203 CHAPTER 26 6TH ED T/F SELF TEST



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

Market power is the term for a type of anticompetitive agreement.
 

 2. 

Market power is the extent to which a firm can exclude competition.
 

 3. 

A firm that can ignore its competitors in setting a price for its product has no market power.
 

 4. 

An agreement that fosters competition is an unreasonable restraint of trade.
 

 5. 

A restraint of trade is any agreement between firms that has the effect of reducing competition in the marketplace.
 

 6. 

The Sherman Act prohibits anticompetitive behavior that produces monopoly power.
 

 7. 

The Sherman Act prohibits concerted activity that unreasonably restrains trade.
 

 8. 

The Clayton Act condemns all forms of anticompetitive behavior not covered under state laws.
 

 9. 

An exclusive dealing contract is illegal per se.
 

 10. 

A tying arrangement is illegal per se.
 

 11. 

The Sherman Act applies only to acts that have a significant impact on interstate commerce.
 

 12. 

Only private individuals can enforce the antitrust laws.
 

 13. 

The insurance industry is a primary focus of the federal government's antitrust efforts.
 

 14. 

A joint effort by businesspersons to obtain government action is exempt from the prohibitions of antitrust law.
 

 15. 

Possessing monopoly power is a violation of antitrust law.
 

 16. 

Monopolization violates the Sherman Act only if a firm intends to monopolize a given market.
 

 17. 

The size of a firm determines whether it is a monopolist.
 

 18. 

The market-share test is a binding principle of law.
 

 19. 

There may be pro-competitive reasons for selling products below cost.
 

 20. 

An attempt to monopolize a market can violate antitrust law.
 



 
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