Suppose a court rules that the ABC Corporation is in violation of the antitrust laws because it produces 70 percent of the output of its industry. This decision is consistent with the
A)U.S. Steel case.
B)Alcoa case.
C)behavioralist approach to antitrust.
D)legal cartel theory of regulation.

Question

Quizplus · Accepted Answer

The Alcoa case is a landmark antitrust decision where the court ruled that Alcoa's dominance of the aluminum market (which was around 90% at the time) constituted a monopoly, even though Alcoa's control was achieved through efficiency and not through improper conduct. This case is relevant because it deals with a company producing a large percentage of an industry's output, similar to the scenario described.

Suppose a Court Rules That the ABC Corporation Is in Violation