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Author Question: In which of the following cases does the tragedy of the commons occur? I. Cattle grazing on private ... (Read 81 times)

jwb375

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on: Jun 29, 2018
In which of the following cases does the tragedy of the commons occur? I. Cattle grazing on private ranches. II. Catching lobsters off the coast of Florida. III. Raising salmon on salmon farms. IV. Using legal services provided by the courts.
 
  A) I only
  B) II only
  C) II and III only
  D) I and IV only

Question 2

If Sony required all its retailers not to sell televisions from other companies, Sony would be engaging in what kind of activity? Is Sony's requirement legal or does it violate the Clayton Act?
 
  What will be an ideal response?


elizabethrperez

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Sony is engaged in an exclusive deal. The question of whether Sony's requirement is legal depends on whether it substantially lessens competition or creates a monopoly. If it does either, it is illegal under the Clayton Act. If it does neither, it is legal under the Clayton Act.


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