1
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)
© 2025 All rights reserved
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
© 2025 All rights reserved
, 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)
© 2025 All rights reserved
