In what cases would the market share held by the dominant firm be or not be an especially relevant or important factor in determining whether a firm has too much market power?
What will be an ideal response?
The application of antitrust law depends on how the market is defined. If the market is defined broadly to include a wide range of products which could substitute for each other, then there is less concentration than if the market is defined narrowly. The key legal question is, “What is the relevant market for a product?” In the 1956 cellophane case the Supreme Court used a broad definition of the market to apply to “flexible packaging materials.” In the 1945 Alcoa case, the court used a narrow definition. In the more complex world that we live in, there are more potential substitutes for products than might have been the case in the past, so it seems that the broader definition would be given more weight.
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Which of the following is likely to be a characteristic of a developing economy?
A. The export of only manufactured goods The efficient use of labor B. A high rate of economic growth C. A low rate of growth of population D. A high rate of illiteracy
According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent
a. True b. False Indicate whether the statement is true or false
Malthus predicted that the power of population
a. was greater than the power of the earth to produce subsistence. His forecast was on the mark. b. was greater than the power of the earth to produce subsistence. His forecast was off the mark. c. was less than the power of the earth to produce subsistence. His forecast was on the mark. d. was less than the power of the earth to produce subsistence. His forecast was off the mark.
How much is this firm's output?
