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AGEC 440 Exam 2 Questions with Answers (100% Correct Answers)

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AGEC 440 Exam 2 Questions with Answers (100% Correct Answers)

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AGEC 440 Exam 2 Questions with Answers (100%
Correct Answers)

Theoretical motivations for IO theory Answer: deviations from

microeconomic theory

-limited information

-government actions

-barriers to entry

-transaction costs

-firm maximizing behavior

Industry motivations for IO theory Answer: increase concern for the

competitive conditions of agricultural marketplace

-Mergers and acquisitions

-concentration

-antitrust




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, 2

three anti trust laws Answer: -prohibit conspiracies to deny market

access or suppress competition

-prohibits the use of predatory and/or exclusionary conduct to acquire

or maintain a monopoly/monopolist position

-prohibit mergers and acquisitions that lessen competition

-all point at same philosophy that antitrust is made to protect

competitive process but not competitors

-markets will never be fully competitive but we are going to try and

make it as competitive as possible

prohibit conspiracies to deny market access Answer: ex: ADM price

fixing

conspiracy behavior violates

prohibits the use of predatory and/or exclusionary conduct to acquire

or maintain a monopoly/monopolist position Answer: -food

manufacturer preventing food retailer from stocking competitor

product (exclusionary conduct)




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