67. If an industry merger severely lessens competition, the merger would be in v

Question

67. If an industry merger severely lessens competition, the merger would be in violation of the:
A) Sherman Antitrust Act.
B) FTC Act.
C) Clayton Act.
D) Robinson-Patman Act.

68. A merger that combines two or more producers of the same good or service is called a ________ merger.
A) vertical
B) horizontal
C) slanting
D) sideways

69. The consolidation of firms that participate in the production of a given product line, but at different stages in the production process, is a(n):
A) vertical merger.
B) conglomerate merger.
C) monopoly merger.
D) horizontal merger.

70. If a firm engages in a vertical merger that substantially reduces competition, then it is likely to be in violation of the:
A) Clayton Act.
B) Celler-Kefauver Act.
C) Sherman Antitrust Act.
D) Federal Trade Commission Act.

Explanation / Answer

In 67, horizontal mergers are prevented by the C, Clayton Act. For 68, this type of merger is called a horizontal merger (whereas a vertical merger combines different stages of production within the company, or A for 69). And for 70, the B, Celler-Kefauver Act, amended the Clayton Act to account for vertical mergers.

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