Discuss how the DuPont cellophane case of 1956 differed from the Alcoa case of 1945
What will be an ideal response?
The Alcoa case used a narrow definition of the market while the DuPont cellophane case used a more broadly defined market. Even though DuPont controlled 100% of the cellophane market, they only controlled a small portion of the all “flexible packaging materials.” Due to the limited control in the whole market, the courts ruled that DuPont did not have a monopoly in the market. While the situation was similar for Alcoa, it was found guilty of violating the Sherman Act.
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Why might well-educated economists disagree on appropriate public policy in some situations?
What will be an ideal response?
In 1999, demonstrators representing a mix of traditional and new ideologies disrupted a major international trade meeting in Seattle of
A) the OECD. B) NAFTA. C) the WTO. D) GATT. E) the G8.
If the money multiplier is approximated to be 10, it means:
A. banks create 10 dollars in deposits from each original deposit of a dollar. B. banks create approximately 10 times the amount of cash in the economy. C. the economy overall has 10 times the amount of deposits as existing cash. D. All of these are true.
Using tariffs to support diversification of a nation’s industrial structure
a. has little application to developing countries. b. is based on the need to protect high domestic wages. c. is based on the need to make the economy less vulnerable to demand fluctuations for its products. d. is designed to encourage specialization by the nation’s producers in just one or a few goods.