Pool Line Is the Manufacturer of a Pool Cleaning System

question 8

Multiple Choice

Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines. The result is that 93 percent of all new pools have the system, and 94 percent of all pool owners buying replacement systems choose Pool Line. Pool Line's competitors have brought suit charging Pool Line with monopolization of the pool cleaning market. Pool Line:

• A)probably has a monopoly per se because of the 90 percent+ market share figures.
• B)probably has a valid defense of superior skill, foresight, and industry.
• C)will owe treble damages to the competitors.
• D)has probably obtained a monopoly illegally.

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Definitions:

Bargain Price

A price that is significantly lower than the perceived value of an item or investment.

Balance Sheet

A financial statement that showcases the assets, liabilities, and shareholders' equity of a company at a specific point in time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Expected Residual Value

The anticipated value of an asset at the end of its useful life, important in calculating depreciation and lease payments.