If a Dominant Firm Is Charged with Refusal to Deal

question 17

Multiple Choice

If a dominant firm is charged with refusal to deal under antitrust law, it is being charged because

• A)the firm will not set its price at the regulated rate.
• B)it is refusing to sell a key input to downstream rivals, thereby reducing or destroying competition.
• C)it is refusing to cooperate with antitrust authorities, such as the Department of Justice.
• D)it will sell its products only to people who agree to buy only from it and not from rival firms.

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Definitions:

Chi-square Statistic

A measure used in statistics to analyze the independence of two categorical variables and assess how likely it is that any observed difference between sets occurred by chance.

Chi-square Statistic

A statistical measure used to evaluate the differences between observed and expected frequencies in one or more categories of a contingency table.

Expected Frequencies

The predicted counts of occurrences across different categories that one would expect if a hypothesis were true.