A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels to discuss their markets and kept notes with phrases such as "Must act together with the Korean makers in order to reap success," and "Extremely confidential.Must not distribute." The result was that the LCD screen producers were able to command high prices for their products,prices that were non-negotiable.Which of the following statements is correct about their conduct?

Question

A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels to discuss their markets and kept notes with phrases such as "Must act together with the Korean makers in order to reap success," and "Extremely confidential.Must not distribute." The result was that the LCD screen producers were able to command high prices for their products,prices that were non-negotiable.Which of the following statements is correct about their conduct?​

Quizplus · Accepted Answer

The conduct of the LCD screen manufacturers is a clear violation of antitrust laws. The meetings and communication to fix prices and market allocation is a per se violation of antitrust laws, which prohibits agreements or actions that unreasonably restrain trade. This also refers to the Sherman Act, as it outlaws contracts, conspiracies, or combinations that restrain trade. Therefore, the correct option is 'both a and b.' Although the Clayton Act also prohibits anti-competitive behaviors such as price-fixing and monopolization, it is not applicable in this case.

A Group of Manufacturers of LCD Screens for Computers and Cell