assume that two firms (firm a and firm b) operate in the u. s. steel industry. the owner of firm a writes the following letter to the owner of firm b:

dear owner of firm b,

i have concluded that if we both restrict output such that we each produce only 3 million tons of steel per year, we can both charge a price that will allow us to effectively monopolize the steel market and to maximize our joint profits. if you would like to enter into this agreement with me, draft a contract that specifies this agreement and i will be more than willing to meet with you and sign it.

sincerely,

owner of firm a

if this letter were sent in the year 1944, the:

a)owners of both firm a and firm b would not be guilty of violating antitrust laws because antitrust laws in 1944 contained exceptions for certain nationally important industries like the steel industry.

b)owners of both firm a and firm b would not be guilty of anything because there were no antirust laws in existence in 1944.

c)owner of firm a would be guilty of violating antitrust laws only if she met with the owner of firm b and signed the contract, but she would not be guilty if the attempt to monopolize the market failed because the owner of firm b never responded to the letter.

d)owner of firm a would be guilty of violating antirust laws because she merely attempted to monopolize the steel industry.

e)owners of both firm a and firm b would not be guilty of violating antitrust laws because antitrust laws in 1944 applied only to industries made up of three or more firms.