Asked by Keondra Rouse on Jun 07, 2024
Verified
Market shares in excess of ________ have historically justified an inference of monopoly power.
A) 70 percent
B) 60 percent
C) 90 percent
D) 80 percent
Monopoly Power
Monopoly power refers to the ability of a single company or entity to control a significant portion of the market for a particular good or service, limiting competition and potentially influencing prices or terms of sale.
Market Shares
Market Shares represent the percentage of an industry's total sales that is earned by a particular company over a specified time frame.
Inference
The process of drawing conclusions from facts or evidence.
- Recognize the significance of market power and monopoly power in antitrust law.
Verified Answer
JM
Jessica MichelJun 07, 2024
Final Answer :
A
Explanation :
Although the exact percentage share necessary to support an inference of monopoly power remains unclear and courts often look at other economic factors (such as the existence in the industry of barriers to the entry of new competitors),market shares in excess of 70 percent have historically justified an inference of monopoly power.
Learning Objectives
- Recognize the significance of market power and monopoly power in antitrust law.