Question
Frank's Fine Family Footwear has been the only shoe store in town since 1975. A newcomer to town, Claudine, decides to open a competing shoe
Frank's Fine Family Footwear has been the only shoe store in town since 1975. A newcomer to town, Claudine, decides to open a competing shoe store, Chaussures de Distinction. Frank keeps operating as he always has, and largely ignores Claudine's business. The people in town continue to shop almost exclusively at Frank's, and Claudine goes out of business in a matter of months. Has Frank created an unlawful monopoly?
a.No, because Frank did not engage in deliberate action to create an monopoly.
b.No, because Claudine assumed the risk of a failing business.
c.Yes, because monopolies are per se unlawful.
d.Yes, because Frank's has maintained a monopoly for many years, and that is a violation of antitrust laws.
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