Under a rule of reason approach, an act is illegal:
A) only if it is shown to result in an anticompetitive outcome.
B) if two parties merge.
C) if a firm engages in price discrimination.
D) if two firms engage in price fixing.
E) if two firms undertake a joint venture

Question

Quizplus · Accepted Answer

Under a rule of reason approach, an act is only considered illegal if it is shown to result in an anticompetitive outcome. This means that the act must harm competition in some way, such as by reducing output, limiting consumer choices, or driving up prices. Mergers, price discrimination, and joint ventures may or may not have anticompetitive effects depending on the specific circumstances, so they cannot be automatically considered illegal. Price fixing, on the other hand, is almost always considered illegal under antitrust laws, regardless of whether a rule of reason or per se approach is used.

Under a Rule of Reason Approach, an Act Is Illegal