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Plaintiff GG Company convinced the court that JJ Company had engaged in antitrus

ID: 2527913 • Letter: P

Question

Plaintiff GG Company convinced the court that JJ Company had engaged in antitrust actions that had

caused GG serious financial damages. As part of GG’s expert’s damage testimony, it was shown that,

during the 18-month time period covered by the case, GG Company’s sales had fallen from an average of

$400,000 per month to $300,000 per month. In addition, GG Company’s profi ts had gone from an average loss of $10,000 per month to an average of a loss of $40,000 per month. Given this information, what is GG Company’s damages in the case?

a. $0.

b. $1,800,000.

c. $540,000.

d. $720,000.

e. None of the above is correct.

Explanation / Answer

Calculation of Damages

Total Damages = (40,000 - 10,000) x18 months = 540,000 of loss

For calculating the damages only loss in profits is considered as sales will be already covered in the profit per month figure. 18 months period is taken for calculation of damages to the plaintiff.

Correct answer is C