Question

According to the Sherman Antitrust Act, which of the following would be considered evidence of a...

According to the Sherman Antitrust Act, which of the following would be considered evidence of a monopoly?

  1. a firm’s ability to control prices
  2. a firm’s ability to exclude competition
  3. a firm’s market share of above 70%

(A) I, II, and II

(B) I and III only

(C) I and II only

(D) II and III only

Homework Answers

Answer #1

Answer is option C)

Option 1 & 2 are right

claim for monopolization under Section 2 of the Sherman Act requires a showing that the defendant has monopoly power. Monopoly power is “the ability to control prices and exclude competition in a given market.”  

Option 3 is wrong

Market share in the relevant market typically is considered the most important factor in assessing whether monopoly power exists. Although no concrete rules exist, the Second Circuit famously noted that a market share of 90% “is enough to constitute a monopoly”

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