Which of the following statements holds true for monopoly power?
A) Mere possession of monopoly power violates Section 1 of the Sherman Act.
B) Monopoly power "thrust upon" a firm violates Section 2 of the Sherman Act.
C) Monopoly power which exists because of a patent or franchise violates the Clayton Act.
D) If the firm engages in conduct that has the effect of extending the monopoly power, it does not violate the Sherman Act.
E) Proof of monopoly power is insufficient to qualify as a violation of the Sherman Act.

Question

Quizplus · Accepted Answer

Under Section 2 of the Sherman Act, it is a violation for a firm to monopolize, attempt to monopolize, or conspire to monopolize any part of interstate or foreign commerce. Proof of monopoly power alone is not enough. 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.

Which of the Following Statements Holds True for Monopoly Power