Economics for Today 9th Edition by Irvin Tucker

Exercise 2

Although U.S. Steel controlled nearly 75 percent of the domestic iron and steel industry, in 1920 the Supreme Court ruled that the firm was not in violation of the Sherman Act because there was no evidence of abusive behavior. What antitrust doctrine was the Court applying in this case?
A) The rule of reason.
B) The per se rule.
C) The marginal cost pricing rule.
D) The natural monopoly rule.