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Essay on Managerial Economics and Business Strategy

Satisfactory Essays

Dr. David J. St. Clair Managerial Economics and Business Strategy

3551 #6 Answers – Summer 2012

1. What type of evidence did Dupont introduce in its plastic wrap trial that proved decisive in its acquittal? __ It brought in cross elasticities to show that there were many substitutes for plastic wrap. It then argued that the market had to be defined to include all substitutes. This broadened the definition of the market to the point where DuPont’s market share was small.___

2. What had Alcoa done that made the judge find it guilty of being a monopoly? _ It had a market share above 90%_. Did the judge rule that Alcoa was a “dirty” firm? _ No ___

3. Why did the verdict in the U.S. Steel …show more content…

What was Brown Shoe accused of in the Kinney Shoe antitrust case? ____ vertical market foreclosure _____

22. What was the remedy in the Brown Shoe/Kinney Shoe Case? ____ The merger was disallowed and the two firms were separated _______

23. What does the firm have to do in a consent decree? _ stop the offending practices without admitting guilty _. What does the Justice Department agree to do in return? ___ drops the case _

24. Why do most firms prefer a consent decree to a trial, even when they feel that they are innocent? __ the case is quickly resolved and there is no conviction that can be used to expose the firm to civil suits seeking triple damages __

25. Are interlocking directorates illegal per se? Yes. Is price fixing illegal per se? Yes

26. Are tying contracts illegal per se? Yes Is price discrimination illegal per se? _ No

27. How can the Justice Department and the FCC respond to a notification of merger filed under the Hart-Scott-Rodino Act? (Hint: they have three options.) __1) approve; 2) deny; or 3) approve with conditions __

28. English Common law became the basis for American Common Law. What dos the Common Law say about damages for parties injured by restraint of trade? ___ injured parties are can collect triple damages ____

29. Which type of elasticity is often important in antitrust cases? _ cross elasticity __

30. Why did the

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