In US V Trenton Potteries Co

question 137

Multiple Choice

In U.S. v. Trenton Potteries Co., competitors openly fixed prices and restrained sales. The Supreme Court held that:

• A) Section 2 of the Clayton Act was unconstitutional
• B) horizontal groupings that do not involve mergers are not illegal
• C) cartels that serve to lower consumer prices may be legal
• D) trade associations that openly announce fixed prices do not violate the law
• E) none of the other choices

---

Definitions:

40-Acre Farm

A piece of farmland covering 40 acres, often used historically in the context of post-Civil War land redistribution promises in the United States.

Variable Costs

are expenses that vary directly with the level of production or output.

AVC

Average Variable Cost refers to the total variable costs per unit of output in economics, helping businesses analyze production expenses.

ATC

Average Total Cost, which is the total cost per unit of output produced, calculated by adding all production costs and dividing by the number of units produced.