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

question 424

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. Under the rule established in Standard Oil Co. of New Jersey v. U.S., a merger between MicroManage and Game Master is likely to result in a:

• A) determination that the merger will help consumers and so, should stand
• B) request by the government that the newly merged company be broken up
• C) request by Game Master that the merged company be dissolved
• D) finding that the computer industry, generally, is exempted from the antitrust laws
• E) finding that an illegal vertical restraint of trade has occurred

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Definitions:

Marxist-Leninist

A political and economic ideology based on the theories of Karl Marx and Vladimir Lenin, advocating for a classless society and the overthrow of capitalism through revolutionary means.

Free Rider

An individual who benefits from resources or services without contributing to the cost or effort.

Collective Efforts

The actions taken and work done by a group working together towards a common goal or project.

Selective Benefits

Rewards or incentives provided exclusively to members of an organization or group to encourage participation and membership, often seen in political or social clubs.