True or false. Under the “rule of reason” that was established by the Supreme Court in the U.S. Steel case, a monopoly seller should be found guilty of violating antitrust laws even if it is charging low prices to consumers and acting the same way a competitive firm would act.
2. How would you expect antitrust authorities to react to:
a. A proposed merger of Ford and General Motors.
b. Evidence of secret meetings by contractors to rig bids for highway construction projects.
c. A proposed merger of a large shoe manufacturer and a chain of retail shoe stores.
d. A proposed merger of a small life-insurance company and a regional candy manufacturer.
e. An automobile rental firm that charges higher rates for last-minute rentals than for rentals reserved weeks in advance.
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