What is an attempt to monopolize an industry?
What will be an ideal response?
In theory, attempts to monopolize an industry mean a firm is trying to become a monopoly. In practice, attempts to monopolize an industry are more difficult to define and are a matter of interpretation by the courts. The "rule of reason" seemed to say that size alone doesn't constitute an attempt to monopolize as in the 1920 U.S. Steel case. But the "rule of reason" was overturned when size did matter as in the 1945 Alcoa case. Even in more recent cases, it is difficult to predict what the court will define as an attempt to monopolize. Decisions continue to be divided in this area of the law.
You might also like to view...
With an optimal two-part tariff
A) all consumer surplus is transformed into profit. B) consumer surplus equals producer surplus. C) the firm earns zero profit. D) consumers maximize consumer surplus.
Due to the impact of increasing returns to scale, smaller firms can produce at a lower average total cost than larger firms
a. True b. False Indicate whether the statement is true or false