Consider the following situations related to a sports stadium in a city. Assume

Question

Consider the following situations related to a sports stadium in a city. Assume this is the primary venue for sports games. Decide whether the city government is likely to intervene to enforce antitrust law or not. (a)The stadium is purchased by a soft drink company, who will only provide their products at games. (b)A company is coming into the town wanting to build a new sports complex. The stadium management decides to fund a smear campaign against the new development, as well as threaten to pull funding from key city council members’ campaign funds.

Explanation / Answer

the government will enforce antitrust law in(b) option but not in 'a'.

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