Asked by Marinda Carraway on Apr 30, 2024
Verified
Every threat of monopolization is condemned as a violation of antitrust law even fi the alleged offender does not possess some degree of market power.
Monopolization
The possession of monopoly power in the relevant market and the willful acquisition or maintenance of that power, as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.
Antitrust Law
Encompasses regulations that prohibit unfair, anti-competitive practices and monopolistic behavior in the marketplace.
Market Power
The ability of a company or entity to control price or exclude competitors within a specific market.
- Establish which procedures are legal and which are in violation of the Sherman Act, the Clayton Act, and other pertinent regulations against monopolistic practices.
- Interpret the legal criteria for determining monopolization and attempts to monopolize a market.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
False
Explanation :
Antitrust laws, specifically in the context of monopolization under the Sherman Act in the United States, require that an entity must possess significant market power or a dangerous probability of achieving monopoly power for their actions to be considered a violation. Simply threatening monopolization without the power to feasibly achieve it does not typically violate antitrust laws.
Learning Objectives
- Establish which procedures are legal and which are in violation of the Sherman Act, the Clayton Act, and other pertinent regulations against monopolistic practices.
- Interpret the legal criteria for determining monopolization and attempts to monopolize a market.