Asked by Charlene Wright on Jun 18, 2024

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The basic issue in the DuPont cellophane case was

A) whether trade crossed state lines.
B) defining the relevant market.
C) structure versus behavior.
D) the rule of reason.

DuPont Cellophane Case

The antitrust case brought against DuPont in which the U.S. Supreme Court ruled (in 1956) that while DuPont had a monopoly in the narrowly defined market for cellophane, it did not monopolize the more broadly defined market for flexible packaging materials. It was thus not guilty of violating the Sherman Act.

Relevant Market

The market segment in which a company competes, defined by its products, customers, and geographic area.

Structure Versus Behavior

A distinction in competition policy and economic regulation focusing on the organization and arrangements of firms (structure) versus their actual conduct (behavior) in the market.

  • Understand the importance of defining the relevant market in antitrust cases.
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BV
Bronwyn von NiessenJun 22, 2024
Final Answer :
B
Explanation :
The basic issue in the DuPont cellophane case revolved around defining the relevant market for determining the company's market power and potential antitrust violations.