Which of the following actions taken by a company with monopoly power would not give rise to a cause of action for monopolization or attempt to monopolize?

Question

Quizplus · Accepted Answer

Getting a patent on a new invention is a legitimate way for a company to gain exclusive rights to produce and sell a product, and it does not necessarily involve anti-competitive conduct.

Answer: B
 Creating excess capacity for production does not necessarily involve anti-competitive conduct.

Answer: D
 While buying the entire market of a raw material may limit competition and raise barriers to entry for new competitors, it is not necessarily illegal if it is done through legitimate means and does not involve anti-competitive conduct.

The action in choice C, charging a price that is below its cost to drive a competitor out of business, is known as predatory pricing and is considered an anti-competitive behavior that can give rise to a cause of action for monopolization or attempt to monopolize.

Which of the Following Actions Taken by a Company with Monopoly