10. The 'rule of reason' was formulated from the Sherman Antitrust Act of 1890. The rule of reason states: A. all activities by large trusts or monopolies are illegal. B. that both vertical and horizontal mergers are illegal. C. market conduct (how firms behave) should determine whether antitrust laws have been violated. D. price discrimination is illegal. 11. Which of the following is MOST likely to be considered a firm in a perfectly competitive market? a. the Royal Diner outside of Brattleboro, Vermont b. Verizon Telephone Company c. a wheat farmer in Kansas d. the only restaurant at the end of the Universe 12. In cases of antitrust violations, the key issue is often: A. Environmental damage or negative externalities B. Whether a patent is valid C. The amount of advertising to increase the customer base D. Identification of the market