Question

By the end of WWI, the studio system was in place in Hollywood and would be until the Paramount Decision was handed down in 1948. What did the Paramount Decision say?

A) Studios were required to share profits with actors.
B) It mandated the separation of production and exhibition.
C) Hollywood studios had to relocate to other cities.
D) Studios were restricted from producing war-related films.

Answer 1

The Paramount Decision mandated the separation of production and exhibition in the Hollywood studio system.

Step-by-step explanation:

The Paramount Decision, handed down in 1948, mandated the separation of production and exhibition in the Hollywood studio system. This decision was made by the U.S. Supreme Court in the case of United States v. Paramount Pictures, Inc. The court ruled that the vertical integration of the film industry, where studios owned their own movie theater chains, was a violation of antitrust laws.