Question

How did the Celler-Kefauver Act (CK Act) affect the nation's antitrust policy?

a. The CK Act strengthened the nation's approach to merger enforcement by amending the Clayton Act. Under the CK Act, purchasing assets with the cash of another company was a potential antitrust violation.

b. The CK Act strengthened the nation's policy toward predatory pricing by clarifying that pricing lower than marginal cost was an antitrust violation.

c. The CK Act weakened the nation's policy by creating a loophole in the Clayton Act making mergers easier.

d. The CK Act strengthened the nation's approach to merger enforcement by making all conglomerate mergers illegal.

A vertical merger occurs when:

a. one firm is a domestic firm, and the other is a foreign company.

b. the merging partners were competitors before the merger.

c. the firms stood in a buyer-seller relationship before the merger.

d.

the products of the merging firms were not related in any manner before the merger.

Which of the following would cause the demand for labor to change?

Answer 1

Answer
The CK Act strengthened the nation's approach to merger enforcement by making all conglomerate mergers illegal.

It was passed in the 1950 which helped reform and empowered the Clayton Antitrust act. One of the clause waas that vertical and conglomorate mergers were made illegal.

the firms stood in a buyer-seller relationship before the merger.

Firms make such mergers to enhance operational efficiency and decrease costs. This is also done to wipe out competition such that the supplier firm would not sell to any rival in the industry.

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