Although U.S. Steel controlled nearly 75 percent of the domestic iron and steel industry, in 1920 the Supreme Court ruled that the firm was not in violation of the Sherman Antitrust Act because
A. there was no evidence of abusive behavior. The Court applied the rule of reason in this case.
B. 75 percent of the market is not high enough to constitute monopoly power.
C. there was no evidence of abusive behavior. The Court applied the per se rule in this case.
D. the domestic iron and steel industry is a natural monopoly. The Court decided regulation was needed.
Answer: A
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A) Wage paid to a worker B) Free lunch at work C) Interest earned on money lent out D) Free parking space in a mall
The marginal revenue curve for a perfectly competitive firm
A) is the same as its demand curve. B) is perfectly inelastic. C) is downward-sloping. D) is the same as its marginal cost curve.
A new area of economics studies situations in which people appear to be making choices that do not appear to be economically rational. This area is called
A) irrational economics. B) social economics. C) behavioral economics. D) new wave economics.
Refer to Table 11-8. Elegant Settings experiences
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