The So-Called Rule of Reason, Based on the 1920 U

Multiple Choice

The so-called rule of reason, based on the 1920 U.S. Steel case, stipulates that a merger of two firms in an industry is

A) illegal if the firms are large.
B) illegal because it increases the monopoly power of the resulting firm.
C) legal if there is no resulting unreasonable restraint of trade.
D) legal because the firm will be subject to regulatory control.