Acme Corp.has captured 90 percent of the national market for commodity "X." Acme is most likely to be liable for monopolization under Section 2 of the Sherman Act,if "X" is:

Question

Quizplus · Accepted Answer

For monopolization charges,the courts first define the relevant product market.A relevant product market is composed of products that meet the functional interchangeability test,which identifies the products "reasonably interchangeable by consumers for the same purposes." Felt-tip pens,cellophane,and yellow notepads fall in the category of interchangeable products while men's socks do not.Therefore,if Acme Corp.has captured 90 percent of the national market for men's socks,then it is liable for monopolization under Section 2 of the Sherman Act.

Acme CorpHas Captured 90 Percent of the National Market for Commodity