Question

​Recently, the U.S. Justice Department initiated an antitrust investigation of​ Homestore, a web site containing the listings of thousands of real estate agents in the United States. In cities and even in local​ communities, there is considerable rivalry among realtors.​ Nevertheless, nearly all belong to the National Association of​ Realtors, which is the majority owner of Homestore. In​ 2000, Homestore purchased a rival​ site, Move, which left the Microsoft​ Network's Homeadvisor as its only remaining key rival. The Justice Department became concerned with the activities of Homestore because A. real estate prices are being driven down by this association. B. the issue of international commerce is affecting the homebuyers. C. the government wants to curtail all internet businesses. D. of the growing concentration of ownership within this single​ association, exhibiting​ cartel-like behavior. The Justice Department will consider it a violation of antitrust laws if A. the internet realtor listings are lowering the price of housing across the states. B. the internet realtor listings are considered to be a part of the relevant market. C. the internet realtor listings are dealing fraudulently with their customers. D. people without​ realtor's licenses start selling real estate.

Answer 1

Answer:

a) The justice department became concerned with the activities of Homestore.com because of the growing concentration of ownership within this single association, exhibiting cartel-like behavior.

b) The justice department will consider it a violation of antitrust law if the internet realtor listings are considered to be a part of the relevant market. Option B is correct.

Explanation:

Based on the scenario described in the question,

a) The justice department became concerned with the activities of Homestore.com because of the growing concentration of ownership within this single association, exhibiting cartel-like behavior.

This implies that they are making a price ring and they can restrict output, producers can work together for their interest.

Thus, Option D is correct.

b) The justice department will consider it a violation of antitrust law if the internet realtor listings are considered to be a part of the relevant market. Option B is correct.