In the 1970s, Members of the Law and Economics Program

question 43

Multiple Choice

In the 1970s, members of the Law and Economics program at the University of Chicago argued that

• A) per se rules should be adopted by the Supreme Court and used to decide antitrust cases.
• B) large firms should always be broken up in order to encourage competition.
• C) large market shares may be due to efficient management or innovation.
• D) courts should "get out of the antitrust business".

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Definitions:

Fixed Rate Debt

A type of loan or security with an interest rate that remains constant throughout the life of the loan or security.

Interest Rate Swaps

Financial derivatives contracts where two parties agree to exchange one stream of interest payments for another, based on a specified principal amount.

Net Interest

Net interest refers to the difference between the interest income generated by banks or financial institutions and the amount of interest paid out to their depositors.

Copper Futures

Contracts to buy or sell copper at a predetermined price on a specified future date.