Econ 7.4
The government no longer decides what role each company can play in the market and how much it can change:
deregulation
Before government approves a merger, companies must prove that the merger would:
lower costs and consumer prices or lead to a better product
A company joins another company or companies to form a single firm:
merger
Setting the market price below cost in the short term to drive competitors out of business:
predatory pricing
The government claimed that , to illegally extend its control over the market, Microsoft had used:
predatory pricing and requiring customers to buy other products
The purpose of both deregulation and antitrust laws is to:
promote competition
Antitrust laws allow the U.S. government to do all of the following except:
stop firms from selling new products
Inventions like cellular phones can affect the government's antitrust policies because:
they can mean that the need for regulation no longer exists
Government policies that keep firms from controlling the price and supply of important goods:
antitrust laws
The U.S. government's policies to deregulate the banking industry allowed savings and loan (S&L) banks to get into trouble because:
too many S&L banks made large, risky loans