Describe two historic legal cases to contrast the two different views of antitrust laws. One case would support the behavior list view of antitrust laws. The other case would support the structuralism views of the antitrust laws
What will be an ideal response?
In the U.S. Steel case of 1920, the courts applied the rule of reason to the issue of monopoly. Monopoly was considered to be illegal only if it behaved in an illegal fashion and sought to dominate a market. The mere fact that U.S. Steel was a large firm possessing monopoly power did not make it illegal.
The contrasting view was offered in the Alcoa case of 1945. The mere fact that Alcoa controlled 90% of the aluminum ingot market was reason for the court to rule that the firm violated antitrust law. In this case, structure mattered more than behavior.
You might also like to view...
The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table. Based on the table, which of the following is correct?
A) The total fixed cost is $1. B) The average fixed cost of 1 gallon is $1.00. C) The average variable cost of 2 gallons of ice cream is $1.00 per gallon. D) Only answers A and B are correct. E) Answers A, B, and C are correct.
The exchange rate is
a. the price of foreign exchange determined by the interaction of supply and demand b. an interest rate determined by the interaction of supply and demand c. fixed by each government separately d. always fixed for any two currencies by the two nations involved, regardless of any agreements made with other nations e. fixed by GATT
When long-run average costs are declining for the entire range of demand, the firm is known as a(n):
a. local monopoly. b. regulated monopoly. c. monopolistically competitive firm. d. natural monopoly. e. oligopoly.
Show graphically why economists refer to single-price monopoly market structure as inefficient.
What will be an ideal response?