The Following Statements Pertain to Alleged Violations of Section 1

question 62

Multiple Choice

The following statements pertain to alleged violations of Section 1 of the Sherman Act.Which statement is accurate?

• A)Although tying agreements are classified as per se violations of Section 1,the judicial treatment given to them differs from pure per se treatment.
• B)Because vertical restraints on distribution necessarily harm intrabrand competition,they are considered per se violations of Section 1.
• C)Because group boycotts amount to reprehensible conduct that cannot have competitive justification,all such agreements are considered per se violations of Section 1.
• D)Although concerted action ordinarily has been required in order for there to have been a violation of Section 1,the Supreme Court recently dispensed with the requirement in price-fixing cases.

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Definitions:

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Income

The sum of all a household’s wages, salaries, profits, interest payments, rents, and other forms of earnings in a given period of time. It is a flow measure.

Price

The cost at which something is sold or bought, determining the economic transaction between buyers and sellers.

Hot Dog

A cooked sausage, traditionally grilled or steamed and served in a partially sliced bun as a sandwich.