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Hypothetical Monopolist Test

Definition

A test used to determine the relevant product market for purposes of an antitrust analysis where a court considers whether it would be hypothetically profitable for a firm to have a monopoly over a proposed set of products. If the monopolist could raise the price of the products by more than 5 percent without significant loss of profits due to customers switching to alternative products, then the products should be considered as part of the same product market.

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