Managerial Economics and Business Strategy Essay

2373 Words Nov 23rd, 2012 10 Pages
Dr. David J. St. Clair Managerial Economics and Business Strategy

3551 #6 Answers – Summer 2012

1. What type of evidence did Dupont introduce in its plastic wrap trial that proved decisive in its acquittal? __ It brought in cross elasticities to show that there were many substitutes for plastic wrap. It then argued that the market had to be defined to include all substitutes. This broadened the definition of the market to the point where DuPont’s market share was small.___

2. What had Alcoa done that made the judge find it guilty of being a monopoly? _ It had a market share above 90%_. Did the judge rule that Alcoa was a “dirty” firm? _ No ___

3. Why did the verdict in the U.S. Steel
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Bill Gates was rather arrogant and combative in dealing with the Justice Department in the Microsoft case. He seemed unaware of Microsoft’s “Alcoa problem.” What was Microsoft’s “Alcoa problem?” _________This is a duplicate question – see above____________

32. How did IBM’s mainframe computer antitrust suit end? ___ the Justice Department dropped the case because the court was unlikely to accept its narrow definition of the relevant market ____

33. Why was Microsoft accused of “vertical market foreclosure?” ___ Microsoft was accused of using its operation system monopoly (MS-DOS) to foreclose browser maker from the market ___

34. Why was Nabisco giving up on its strategy of seeking to create a cracker of biscuit monopoly? __It was unable to eliminate competition, especially the competition of capitals __

35. Why was Nabisco so open in its 1901 annual report about discussing its efforts to monopolize the cracker (biscuit) industry? __Because of the E.C. Knight Case, there were no antitrust laws in 1901 that pertained to manufacturing firms _

36. In its 1901 annual report, Nabisco announced that it was giving up on its efforts at creating a cracker or biscuit monopoly. What was the company’s new strategy going to be? ____Nabisco was going to concentrate on making better products and creating a more efficient and competitive firm

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