One The small town of Fort William has only two pharmacists. One pharmacist is Catholic, the...

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One The small town of Fort William has only two pharmacists. One pharmacist is Catholic, the other Protestant. side of the town is predominantly Catholic; the other predominantly Protestant. The Catholic pharmacist is located on the Catholic side of town; the Protestant pharmacist on the Protestant side of town. But some Catholics shop at the Protestant pharmacist's shop, and some Protestants at the Catholic pharmacist's shop. The two pharmacists agree that each will refrain from advertising their products to customers on the other's side of town. Every Sunday, the two pharmacists meet in the park and arrange to sell their products at identical prices. IS THIS IN VIOLATION OF THE ANTIMONOPOLY LEGISLATION? SCENARIO 2 Acme, the world's largest producer of auto parts, has a new Wood Products division that manufactures saws and other woodworking tools. Acme has no retail outlets of its own, but sells its products to several major retail chains, who make the retail sales. Acme has worked very hard to produce products that are price-competitive with Black and Decker and other major manufacturers. To gain market share, Acme requires buyers of its auto parts to (1) also purchase for resale Acme's new wood products, and (2) agree to limit the markup (retail price - wholesale price) to 10% of the wholesale price. IS THIS IN VIOLATION OF THE ANTIMONOPOLY LEGISLATION? SCENARIO 3 Acme, the world's largest producer of auto parts, controls 65% of the American auto part market, and 25% of the world market. A British firm, UKAuto, controls 40% of the world market, but only 10% of the American market. UKAuto wants to increase their market share in the U.S. When UKAuto begins to erode Acme's American market share, the two firms begin merger negotiations, and ultimately decide that Acme will purchase UKAuto. IS THIS IN VIOLATION OF THE ANTIMONOPOLY LEGISLATION? One The small town of Fort William has only two pharmacists. One pharmacist is Catholic, the other Protestant. side of the town is predominantly Catholic; the other predominantly Protestant. The Catholic pharmacist is located on the Catholic side of town; the Protestant pharmacist on the Protestant side of town. But some Catholics shop at the Protestant pharmacist's shop, and some Protestants at the Catholic pharmacist's shop. The two pharmacists agree that each will refrain from advertising their products to customers on the other's side of town. Every Sunday, the two pharmacists meet in the park and arrange to sell their products at identical prices. IS THIS IN VIOLATION OF THE ANTIMONOPOLY LEGISLATION? SCENARIO 2 Acme, the world's largest producer of auto parts, has a new Wood Products division that manufactures saws and other woodworking tools. Acme has no retail outlets of its own, but sells its products to several major retail chains, who make the retail sales. Acme has worked very hard to produce products that are price-competitive with Black and Decker and other major manufacturers. To gain market share, Acme requires buyers of its auto parts to (1) also purchase for resale Acme's new wood products, and (2) agree to limit the markup (retail price - wholesale price) to 10% of the wholesale price. IS THIS IN VIOLATION OF THE ANTIMONOPOLY LEGISLATION? SCENARIO 3 Acme, the world's largest producer of auto parts, controls 65% of the American auto part market, and 25% of the world market. A British firm, UKAuto, controls 40% of the world market, but only 10% of the American market. UKAuto wants to increase their market share in the U.S. When UKAuto begins to erode Acme's American market share, the two firms begin merger negotiations, and ultimately decide that Acme will purchase UKAuto. IS THIS IN VIOLATION OF THE ANTIMONOPOLY LEGISLATION?

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Scenario 1 The arrangement between the two pharmacists could potentially be seen as a form of market ... View the full answer