DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

VISAKHAPATNAM

______________________________________________________________________________
SEMESTER VIII Mid – Semester Examinations, February-March - 2023
Competition Law (08-2)

Instructions:
1. Answer all the THREE questions
2. Answer to question No.1 and No.2 is compulsory
3. Any over writing in answering question number one will be treated as invalidate answer
4. Answer any one in question No.3
5. Do not write anything on the question paper. It will be treated as malpractice.
Total Marks - 25
Time: 1½ Hour

1. Choose the correct answer from the following MCQ’s 10x1/2 = 5marks

i) What is the difference between perfect competition and monopolistic competition?

A. Perfect competition has a large number of small firms while monopolistic competition does
not.
B. In perfect competition, firms produce identical goods, while in monopolistic competition,
firms produce slightly different goods.
C. Perfect competition has no barriers to entry, while monopolistic competition does.
D. Perfect competition has barriers to entry while monopolistic competition does not.

ii) Which of the following is the best example of a perfect competitive market?
A. Diamonds
B. Athletic shoes
C. Soft drinks
D. Farming

iii) Firms face competition when the good they produce _________
A. Is in a market with natural barriers to entry.
B. Is unique.
C. Is in a market with legal barriers to entry.
D. Has a close substitute.

iv) Which of the following is different about perfect competition and monopolistic competition?
A. Firms in monopolistic competition compete on their product's price as well as its quality and
marketing.
B. In monopolistic competition, entry into the industry is unblocked.
C. Perfect competition has a large number of independently acting sellers.
D. Only firms in monopolistic competition can earn an economic profit in the short run.

v) In an industry with a large number of firms __________

A. Collusion is impossible.
B. One firm will dominate the market.
C. Each firm will produce a large quantity, relative to market demand.
D. Competition is eliminated.
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vi) Which of the following made it illegal to charge unreasonably low prices with the intention of
destroying competition or eliminating competitors?
A. Robinson-Patman Act, 1936
B. Sherman Act, 1890
C. Clayton Act, 1914
D. Federal Trade Commission Act, 1914

vii) The Wheeler-Lea Act, 1938 was designed to protect consumers from _________
A. Monopoly
B. Unfair methods of competition
C. False or deceptive advertising
D. Tie-in-arrangements

viii) A barrier to entry is __________

A. An open door.
B. The economic term for diseconomies of scale.
C. Illegal in most markets.
D. Anything that protects a firm from the arrival of new competitors.

ix) When did the Competition Act, 2002 come into force?
A. 01 April 2004
B. 31 March 2003
C. 01 May 2002
D. 23 April 2003

x) Monopolies and restrictive Trade practices (MRTP) Act was passed in_______.
A.1970
B.1969
C.1971
D.1968

2. Andhra Books and Paper Sellers Association (ABPSA) an association of wholesalers and
retailers of books and papers, generally engages in directly to indirectly determining the sale
price of books and papers as well as controls the supply of books and papers by issuing
circulars. A circular issued on 20.10.2020 directed the retailers to sell the books only at MRP
fixed by it on account of an agreement entered into with the members of ABPSA. The CCI
received an anonymous letter alleging violation of the provisions of the Competition Act, 2002.
Discuss with relevant case laws.

10Marks

3. Answer any one of the following: 10Marks

a) Examine United States v. E. I. du Pont de Nemours & Co. (351 U.S. 377(1956)) case.

b) Trace the history and development of competition law in USA and India.
.

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