Colorado, Being Home to Many Microbreweries, Has Established an Alcohol

question 24

Multiple Choice

Colorado, being home to many microbreweries, has established an alcohol distributorship that controls all distribution of beer within the state. Breweries in the surrounding states have complained to the FTC about this, complaining that Colorado has established a monopoly on the beer distribution market in that state that is harming their business. Will their complaints result in Colorado being assessed a violation of Section 2 of the Sherman Act?

• A) Yes, because they have established a horizontal restraint on trade.
• B) Yes, because they have created a monopoly.
• C) Yes, if it can be shown they have engaged in predatory pricing.
• D) No, unless it can be shown they actively intended to create a monopoly.
• E) No, because states are exempt from Section 2 of the Sherman Act.

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Definitions:

Operant-Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the subject to associate certain behaviors with specific consequences.

Successive Approximations

In the operant-conditioning procedure of shaping, behaviors that are ordered in terms of increasing similarity or closeness to the desired response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response.