How did the Clayton Act of 1914 strengthen and clarify the intent of the Sherman Act of 1890?
What will be an ideal response?
The Clayton Act contained at least four provisions that defined specific illegal activity. First, it explicitly forbids price discrimination between purchasers when the price discrimination was not based on cost differences. Second, it forbids “tying” contracts that sellers used to force buyers to buy more products than just the desired product from the seller. Third, stock purchases of competing corporations that would tend to lessen competition were prohibited. Fourth, directors of large competing firms were prohibited from serving on each other’s boards.
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The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is
A) upward sloping. B) downward sloping. C) vertical. D) horizontal. E) unnecessary.
Dell and Gateway must decide whether to lower their prices, based on the potential economic profits shown in the payoff matrix above. (The profits are in millions of dollars)
If the firms collude and don't cheat, Dell's profit is ________ million and Gateway's profit is ________ million. A) $10; $10 B) $15; $15 C) $5; $20 D) $20; $5