According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?
A) Always-monopoly is per se illegal under the rule of reason.
B) Only when the monopoly created negative externalities.
C) Only when the monopoly engaged in illegal business practices.
D) Only when the monopoly charged excessively high prices.

Question

Quizplus · Accepted Answer

The rule of reason requires an analysis of the specific business practices and circumstances to determine whether a monopoly has engaged in anticompetitive behavior. The court will consider the effects on competition and consumer welfare, as well as any justifications for the monopoly's actions. Therefore, the correct answer is C, as a violation of the law must be found in the monopoly's business practices.

According to the Rule of Reason, When Would the Courts