Econ 7.4

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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


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