Q17

 
laurenvarg
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Vinny Gambini
Vinny Gambini
 
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Q17

by laurenvarg Tue Jun 06, 2017 8:57 pm

Monopoly power

Would the use of leverage meet the criteria for abuse of monopoly power outlined in the first paragraph.

First off...
Leverage: the use of power in one market to reduce competition in another. (lines 50-52)
Abuse of monopoly power: (lines 10-13)
1) Must be shown to possess monopoly power
2) Must have been used to exclude competition in monopolized market or related markets.

YES it does qualify because it is excluding competition in a related market.

a) eliminiate it does qualify
b) Eliminate
C) characteristic of monopoly power? we're talking about abuse of monopoly power. reducing comp. in competing markets is not a characteristic of having a monopoly power.
D) "Leverage" innately means the competition is already reduced, so doubt they're using competitive prices but even so they're reducing competition somehow (packages/bundles etc). They could be using competitive prices and still doing this. Eliminate
E) Yes, because leverage as defined in lines 10-13 eliminates competition in a related market satisfies needs 1 and 2 of the explanation of abuse of monopoly power.