Assume That Two Firms (Firm a and Firm B)operate in the U.S.steel

question 169

Multiple Choice

Assume that two firms (Firm A and Firm B) operate in the U.S.steel industry.The owner of Firm A writes the following letter to the owner of Firm B:
Dear Owner of Firm B,
I have concluded that if we both restrict output such that we each produce only 3 million tons of steel per year,we can both charge a price that will allow us to effectively monopolize the steel market and to maximize our joint profits.If you would like to enter into this agreement with me,please draft a contract that specifies this agreement and I will be more than willing to meet with you and sign it.
Sincerely,
Owner of Firm A
If this letter were sent in the year 1944,the

• A) owner of Firm A would be guilty of violating antitrust laws because he or she merely attempted to monopolize the steel industry.
• B) owner of Firm A would be guilty of violating antitrust laws only if he or she met with the owner of Firm B and signed the contract,but the owner of Firm A would be not guilty if the attempt to monopolize the market failed because the owner of Firm B never responded to the letter.
• C) owners of both Firm A and Firm B would not be guilty of violating antitrust laws because antitrust laws in 1944 applied only to industries made up of three or more firms.
• D) owners of both Firm A and Firm B would not be guilty of violating antitrust laws because antitrust laws in 1944 contained exceptions for certain nationally important industries like the steel industry.
• E) owners of both Firm A and Firm B would not be guilty of anything because there were no antitrust laws in existence in 1944.

---

Definitions:

Avocados

A nutrient-rich fruit known for its creamy texture and health benefits, often used in culinary arts.

Restrictive Clause

A part of a sentence that limits the scope of a noun and is essential to its meaning.

Noun Clause

A clause that functions as a noun within a sentence, typically beginning with words such as "that," "what," or "whatever."

Predicate

The part of a sentence or proposition that tells something about the subject, usually involving an action, quality, or state.