The U.S. Steel case of 1920 and the Alcoa case of 1945 dealt with which antitrust question?

A) To what extent should firms be limited in buying plant and equipment from other firms?
B) Should an industry be judged by its behavior or by its structure?
C) Should the steel and aluminum industries be considered natural monopolies?
D) Should mergers be permitted between firms in closely related industries?

Question

Alexia Porter · Accepted Answer

Final Answer : B, Explanation :  These cases focused on whether antitrust laws should evaluate an industry based on the behavior of the firms within it or the overall structure of the industry. The U.S. Steel case questioned if the company's dominance was due to unfair practices or simply efficient business, while the Alcoa case dealt with whether Alcoa's control over aluminum production constituted a monopoly through anti-competitive actions or was a result of its efficiency and innovation.

Definitions

Learning Objectives

Learning Objectives

Related questions