Question

question 9 (2 points)
which of the following best describes the outcome of the dupont cellophane case?
a) the court ruled that dupont did not have a monopoly because it faced competition from other flexible packaging materials.
b) the court ruled that dupont must divest its cellophane business.
c) the court ruled that dupont was a natural monopoly.
question 10 (2 points)
which of the following best describes the public interest theory of regulation?
a) regulation is driven by the needs and demands of large corporations.
b) regulation is always detrimental to market efficiency.
c) regulation is designed to protect consumers and promote fairness in the market.

Explanation:

• Question 9: In the DuPont cellophane case, the court considered the relevant market. It was determined that the market was not just cellophane but included other flexible packaging materials. Since DuPont faced competition from these other materials, it did not have a monopoly.
• Question 10: The public - interest theory of regulation posits that regulation is put in place to correct market failures. This includes protecting consumers from issues like fraud, ensuring product safety, and promoting fair competition in the market.

Answer:

Question 9: A. The court ruled that DuPont did not have a monopoly because it faced competition from other flexible packaging materials.
Question 10: C. Regulation is designed to protect consumers and promote fairness in the market.