As it turns out, Nolan and Sadie's good fortune with the restaurant has caused their competitors to lose business. In fact, Cajun Kitchen has been so successful that two other nearby restaurants are in danger of going out of business. Nolan and Sadie have
A) engaged in anti-competitive behavior.
B) violated the Sherman Antitrust Act.
C) engaged in price discrimination.
D) done nothing against the law.

Question

Quizplus · Accepted Answer

Part of capitalism is healthy competition. Nothing in the question indicates that Cajun Kitchen has done anything against the law. In fact, they have a competitive advantage from the design of the restaurant and the good food. They have not violated any of the antitrust laws as they have not monopolized the restaurant industry nor have they attempted to drive their competitors out of business by lowering their prices excessively.

As It Turns Out, Nolan and Sadie's Good Fortune with the Restaurant