Fact Pattern 20-1 MicroManage Is the Fastest Growing Home-Software Producer in the Country

question 312

Multiple Choice

Fact Pattern 20-1
MicroManage is the fastest growing home-software producer in the country. In 2000, it sold 6% of all home software in the U.S., but in 2011, it sold 55% of all home software. A recent issue of Computer Universe said that MicroManage was "the most dominant and aggressive of all home-software developers." Home software is a small part of the entire software industry.
In 2011, MicroManage proposed a merger with Game Master, its main rival. Game Master was responsible for 10% of all home-software sales in 2010. MicroManage's president says that the combination of the firms will allow MicroManage to lower costs and pass the savings on to its customers.
The Department of Justice filed suit to stop this merger, claiming the combination would give monopoly power to the merged firm. Justice insists that consumers would lose in the end.
-Refer to Fact Pattern 20-1. Which antitrust statute specifically allows challenges of mergers?

• A) Clayton Act
• B) Sherman Act
• C) Federal Trade Commission Act
• D) Interstate Commerce Act
• E) no statute specifically addresses mergers

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Definitions:

Game

A structured form of play, usually undertaken for entertainment or fun, and sometimes used as an educational tool.

TOTE

The self-regulation feedback loop of Test, Operate, Test, Exit.

Evaluate

To assess or examine something in order to understand its value, importance, or condition, often leading to a judgment.

Error Management Theory

The idea that both men and women seek to minimize the most costly type of error, but that men’s and women’s goals, and hence worst errors, differ.