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BLW 203 CHAPTER 27 6TH ED T/F SELF TEST



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

 1. 

All agreements between rivals result in enhanced market power or unreasonably restrain trade.
 

 2. 

If an agreement is a per se violation, no further inquiry into its reasonableness is necessary.
 

 3. 

A horizontal restraint is an anticompetitive agreement between firms operating at different levels of a market.
 

 4. 

A price fixing agreement is analyzed under the rule of reason.
 

 5. 

Any agreement that artificially fixes prices is an unreasonable restraint of trade.
 

 6. 

A market division by class of customer between rival firms is not a violation of antitrust law.
 

 7. 

Territorial and customer market divisions are judged under a rule of reason.
 

 8. 

An industry in which a few firms control a large percentage of market sales is a concentrated industry.
 

 9. 

A group boycott cannot violate the Sherman Act.
 

 10. 

If a joint venture does not involve price fixing or a market division, it is not in violation of antitrust law.
 

 11. 

If a joint venture involves price fixing, it will be analyzed under the rule of reason.
 

 12. 

A vertical restraint is an agreement that restrains competition between firms competing in the same market.
 

 13. 

A resale price maintenance agreement never violates the Sherman Act.
 

 14. 

A resale price maintenance agreement occurs when a manufacturer sets a minimum price that a retailer agrees to charge for the manufacturer's product.
 

 15. 

In most circumstances, a manufacturer may deal or not deal with anyone without incurring liability under the antitrust laws.
 

 16. 

Price discrimination occurs when different buyers are charged different prices for the same goods.
 

 17. 

For purposes of price discrimination, identical products sold under different labels are deemed to be of like quality.
 

 18. 

A tying arrangement occurs when competitors agree to fix, or "tie," their prices at the same level.
 

 19. 

In determining the legality of a tying arrangement, there are three relevant markets to consider.
 

 20. 

A merger between firms that compete with each other in the same market is a vertical merger.
 



 
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