Under a rule of reason approach, which of the following would be legal in the United States?
A) The merger of two small companies in an unconcentrated market.
B) Price fixing between IBM and Compaq.
C) The merger between Ford and General Motors.
D) Kellogg's and General Mills collude to drive Quaker Oats out of the business.
E) Exxon Oil and Mobil Oil elect the same person to their boards of directors.

Question

Quizplus · Accepted Answer

Under a rule of reason approach, mergers of two small companies in an unconcentrated market are typically legal as they are unlikely to cause any significant harm to competition.

Choice B is illegal as price fixing is a per se violation of antitrust laws. 
Choice C is likely illegal as a merger between two of the largest players in the auto industry would substantially reduce competition. 
Choice D is illegal as colluding to eliminate a competitor from the market is a per se violation of antitrust laws. 
Choice E is potentially illegal as it could lead to a violation of antitrust laws through collusion or conspiracy between the two companies.

Under a Rule of Reason Approach, Which of the Following