1.10. One of the more important antitrust cases of the 20th century involved the Aluminum Company of America (Alcoa) in 1945. At that time, Alcoa controlled about 90 percent of primary aluminum production in the United States, and the company had been accused of monopolizing the aluminum market. In its defense, Alcoa argued that although it indeed controlled a large fraction of the primary market, secondary aluminum (i.e., aluminum produced from the recycling of scrap) accounted for roughly 30 percent of the total supply of aluminum and that many competitive firms were engaged in recycling. Therefore, Alcoa argued, it did not have much monopoly power.

a. Provide a clear argument in favor of Alcoa’s position.

b. Provide a clear argument against Alcoa’s position.

c. The 1945 decision by Judge Learned Hand has been called “one of the most celebrated judicial opinions of our time.” Do you know what Judge Hand’s ruling was?