Chapter 11: Antitrust Law- Monopiles and Mergers

Question 1

Product Market

Answer 1

1- General categories of goods and services in which the defendant particular products or services compete
2-Those not in the same competitive arena

Question 2

Geographic Market

Answer 2

Determine where the product can be purchased.
Any section of the country where the product is sold in commercially significant quantities

Question 3

Market Share

Answer 3

Market share above 70% supports monopoly power
Normally between 50% to 70%

Question 4

Structure/Conduct

Answer 4

1- Requires a showing of both market power
2- Willful acquisition or maintenance of that power

Question 5

3 Part Test for attempted monopolization

Answer 5

1- Defendant has engaged in predator or anti-competitive conduct
2- Specific intent to monopolize
3- Dangerous probability of achieving monopoly power

Question 6

Coordinated Effects/Collusion

Answer 6

Merging parties and their competitors might fix prices, reduce output, reduce quality and coordinate their activities rather than compete against each other

Question 7

Unilateral Effects

Answer 7

Will the merger allow the newly merged firm to unilaterally raise prices, restrict output or control innovation?

Question 8

Market

Answer 8

Smallest product and geographic market in which a monopolist could raise prices a small but significant and non transitory amount