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1. Which of the following practices is restricted by the antitrust laws of the United States?
a. Merger of smaller firms into a large firm
b. Entry of new firms in the long run
c. Standardization of products in a market
d. Exit of non-performing firms in the long run
e. Quality differentiation by competitive firms
2. The first phase of antitrust policy in the U.S. began with the passage of the Sherman Antitrust Act in 1890. To judge a firm’s action, the courts in this period used:
a. a per se rule.
b. a rule of reason.
c. a rule of thumb.
d. rules of order.
e. strict enforcement rule.
3. Under the second phase of antitrust policy that began in 1914 in the U.S., the courts used _____ in order to judge the firms’ actions.
a. a rule of reason
b. the rule of 72
c. a rule of thirds
d. a per se rule
e. the rule of law
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