Under what circumstances would Quality Market, a small store in Rustic, an isolated town, be considered a mo¬nopoly? If Quality Marketis a monopoly, is it in violation of antitrust law?
The elements of the offense of monopoliza¬tion under the Sherman Act include monopoly power and its willful acqui¬si¬tion. Market domination that results from legiti¬mate competitive behavior (such as foresight, in¬novation, skill, good management, or, as in this problem, iso¬lation) is not a violation. Also, size alone does not determine whether a firm is a monopoly—size in relation to the market is what matters.
A small store like Quality Marketin an isolated town like Rustic has a mo¬nopoly if it is the only store serving that market.
Monopoly in¬volves the power to affect prices and output. If a firm has sufficient market power to control prices and exclude competition, that firm has monopoly power. Monopoly power in itself is not a violation of the Sherman Act. The of¬fense also requires an intent to acquire or maintain that power through an¬ticompetitive means.
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Fill in the blank(s) with correct word
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A. Expense recognition (matching) principle. B. Time period assumption. C. Operating cycle of a business. D. Accrual basis of accounting. E. Going-concern assumption.
Which of the following is true of being objective when writing persuasive messages??
A) ?Using flowery language B) ?Avoiding specific language C) ?Including superlatives D) ?Avoiding exaggerations