Game designers Troy and Jeff have designed a new computer game system.This system is manufactured and sold by their company,GameTech Corp.The game system they devised uses new technology that they created and their system far exceeds the capabilities of any current gaming systems.This gives them a monopoly in the gaming market.Which of the following statements is true in this scenario?
A) GameTech is guilty of engaging in predatory conduct.
B) GameTech has monopoly power that violates the Sherman Act.
C) GameTech has monopoly power that violates the Clayton Act but not the Sherman Act.
D) GameTech has monopoly power that does not violate the Sherman Act.
E) GameTech is guilty of monopoly that violates both the Clayton and Sherman Act.

Question

Quizplus · Accepted Answer

GameTech has monopoly power that does not violate the Sherman Act. Some monopolies are lawful. If monopoly power is thrust upon a firm or if it exists because of a patent or franchise, there is no violation of Section 2 if the firm does not engage in conduct that has the effect or purpose of protecting, enforcing, or extending the monopoly power.

Game Designers Troy and Jeff Have Designed a New Computer