Egt1 Task 3

In: Business and Management

Submitted By torisky2tell
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A. The federal government put together the antitrust laws as a way to make businesses compete fairly. These laws prevent monopolies, fixed pricing, they regulate trade and commerce and promote ethical production of products and services, at reasonable price points. The four major pieces of legislation that make up the antitrust laws are? The Sherman Antitrust Act, The Clayton Antitrust Act, the Celler-Kefauver Act of 1950, and the Federal Trade commission act. The Sherman Antitrust Act focuses on restraint and prevention of trade between foreign nations, prohibition of monopolies, and is the only US department of Justice that has the power to prosecute people that are in violation of this act. The Clayton Antitrust Act was passed to prohibit acquisitions and mergers that would lessen competition between companies, enabled state attorney generals the ability to prosecute and enforce federal antitrust laws. It also outlawed price discrimination, regulated stock acquisitions and tying contracts. The Clayton Antitrust Act was amended by The Robinson-Pitman Act that banned discriminatory business practices. The Celler Kefauver Act of 1950 was passed to regulate the acquisition of firms that were not in direct competition and limited mergers that would lessen competition in the market place. The Federal Trade Commission Act created the actual Federal Trade Commission and gave the commission the power to enforce US Antitrust legislation.

B. The intended purpose of industrial regulation is to reduce the market power of monopolies and oligopolies as well as increase market competition and prevent collusion. 1. An oligopoly is a market structure where there are few firms that are in and dominating the market. With this being said because oligopoly markets have few suppliers there is lack of competition in the market place which can result in higher…...

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