Regulation and Antitrust Policy (Econ 180)
|
I. Multiple Choice
(1)c. (2)d. (3)a. (4)c. (5)b. (6)c. (7)d. (8)b. (9)d. (10)b.
II. Problems
(1) [Long-distance telecommunications technology: 8 pts]
(2) [Transformation of natural monopoly pts]
(3) [Multiproduct cost functions: 36 pts]
III. Critical thinking
The "essential facilities doctrine" holds that a monopolist who controls an essential facility must provide access to competing firms, if those firms cannot construct their own facility. Otherwise, the monopolist is guilty under Section 2 ("monopolization") of the Sherman Act. Like railroads in the past, today's telecommunications companies depend on interconnection with other companies. For example, wireless compannies depend on interconnection with local landline telecommunications companies. So the "essential facilities doctrine" would surely require major telecommunications companies, especially local landline companies, to allow other companies to connect with their network. [See Viscusi, Harrington, and Vernon (2005) pp. 323-324 for a discussion of important cases.]
I. Multiple Choice
(1)d. (2)a. (3)c. (4)e. (5)a. (6)d. (7)a. (8)c. (9)e. (10)c.
II. Problems
(1) [Long-distance telecommunications technology: 8 pts]
(2) [Transformation of natural monopoly pts]
(3) [Multiproduct cost functions: 36 pts]
III. Critical thinking
Save as version A.
[end of answer key]