1. Micro Chapter 30 Presentation 1

2. 2011 IRS Tax Brackets Tax BracketMarried Filing JointlySingle 10% Bracket$0 – $16,750$0 – $8,375 15% Bracket$16,750 – $68,000$8,375 – $34,000 25% Bracket$68,000 – $137,300$34,000 – $82,400 28% Bracket$137,300 – $209,250$82,400 – $171,850 33% Bracket$209,250 – $373,650$171,850 – $373,650 35% BracketOver $373,650

3. Sherman Anti-Trust Act (1890) All contracts, trusts, and restraints of free trade are illegal Having or conspiring to have a monopoly is illegal Also illegal to fix prices

4. Clayton Act (1914) Strengthened the Sherman Act Outlawed price discrimination Prohibits tying contracts- when a producer requires you to buy one product and then another (Kodak requiring that they develop film) Corporations can’t obtain a majority of their competition’s stock No Interlocking Directorates- director of one firm can’t be on the board of his competition

5. Horizontal Merger (Integration) When firms in the same industry merge and limit competition EX- Exxon with Mobil

6. Vertical Merger (Integration) A merger between firms at different stages of production Ex- Oil company owning the oil wells, pipelines, oil refineries, and gas stations

7. Herfindahl Index US government uses this when looking at monopoly power Usually challenge a merger with index > 1800 If the merger adds more than 100 points

8. Examples of Blocked Mergers Staples and Office Depot WorldCom and Sprint DirectTV and Dish