Federal Antitrust Laws Apply To

question 22

Multiple Choice

Federal antitrust laws apply to:

• A) intrastate commerce exclusively.
• B) behavior that substantially affects interstate commerce or international trade.
• C) behavior that affects external economies other than the U.S.
• D) any type of nonimport trade.

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Definitions:

Annual Profit

The net income a company or individual earns in a fiscal year after all expenses are subtracted from total revenues.

Cartels

Organizations of independent businesses formed to coordinate the production, pricing, and marketing of goods to monopolize the market and restrict competition.

Incentive to Deviate

A situation where a party has a profitable reason to diverge from a prescribed strategy or agreement.

Monopoly Output

The quantity of goods or services produced by a monopolist, characterized by the lack of competition and the ability to control prices.