Which of the following statements is true for monopolies?
A) Section 1 of the Sherman Antitrust Act makes it unlawful to monopolize.
B) It is defined as the power to control prices or exclude competition.
C) Market power cannot be measured by the monopolist's share of the relevant market.
D) Some companies enjoy absolute monopoly over their relevant markets.

Question

Quizplus · Accepted Answer

Section 2 of the Sherman Antitrust Act makes it unlawful to monopolize, attempt to monopolize, or conspire to monopolize a line of commerce. The Supreme Court has defined monopoly power as the power to control prices or exclude competition. Market power is measured by the monopolist's share of the relevant market. Absolute monopoly, i.e., 100 percent of the market, doesn't happen.

Which of the Following Statements Is True for Monopolies