Sherman Act Monopolization

The video tutorial discusses how monopoly power can be acquired through anti-competitive means, contrasting it with pure competition. It covers exclusionary acts like resource control, exclusive sales agreements, and tying relationships, which can unfairly limit market entry. The refusal to deal with competitors is examined for its potential anti-competitive effects. Predatory pricing is also explored, highlighting its intent to eliminate competitors by pricing below marginal cost. The tutorial emphasizes evaluating these actions under the rule of reason to determine their legality and impact on competition.

What is an example of an exclusionary act that can lead to monopolization?

• Offering discounts to customers

• Buying up all available resources

• Improving product quality

• Increasing advertising budget

How can refusing to deal with others affect the market?

• It can improve market efficiency

• It can have anticompetitive effects

• It can lead to increased competition

• It can reduce product prices

What is the rule of reason used to evaluate?

• The effectiveness of pricing models

• The competitive effects of business practices

• The quality of customer service

• The legality of advertising strategies

What is the intent behind predatory pricing?

• To enhance customer loyalty

• To improve product quality

• To push competitors out of the market

• To increase market share

What might justify predatory pricing under the quick look rule of reason?

• Pro-competitive justifications

• Increased advertising

• Higher production costs

• Improved customer service