The Celler-Kefauver Act of 1950: ​

question 171

Multiple Choice

The Celler-Kefauver Act of 1950: ​

• A) ​amended the Sherman Act to outlaw price fixing where the effect is to lessen competition.
• B) ​created the Interstate Commerce Commission.
• C) ​ prohibited conglomerate mergers where the effect is to lessen competition.
• D) ​prohibited a firm from acquiring the assets of another firm where the effect is to lessen competition.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered and should not affect current and future business decisions.

Erosion Costs

Costs incurred when a new project or product negatively impacts the sales and profits of existing products or services.

Operating Cash Flow

The money a company makes from core business activities excluding costs associated with financing or investments.

Salvage Value

The estimated resale value of an asset at the end of its useful life, reflecting what a company expects to recover to offset initial costs.