Egt1 Task 3
A. Concern in the late 1800s with society’s economic well-being, public pressure and the market control by oligopolist and monopolist also known as trusts the government enacted antitrust legislation.
The Sherman Act of 1890 was the first legislation aimed at declaring restraint of trade and monopolization to be illegal.
With the Sherman Act being somewhat vague the Clayton Act of 1914 sought to further empower the Sherman Act by banning price discrimination, prohibiting tying contracts, interlocking directories and acquisitions that lessen competition.
Additional legislation in 1914 was the Federal Trade Commission Act which created the Federal Trade Commission commonly known as the FTC. With a shared responsibility the FTC and the U.S. Department of Justice enforce the Sherman Act and Clayton Act. The FTC also examines unfair completive practices and methods issuing cease and desist orders.
In 1950 the Celler-Kefauver Act sought to remedy the gap in Section 7 of the Clayton Act by stopping the reduction of competition of one business by obtaining the physical assets of another competing business.
B. Government imposed antitrust acts/industrial regulations are to protect consumers of an industry’s actions pertaining to price and quantity preventing a monopoly to that end benefiting society.
B. 1. Oligopoly industries having a few large firms gain market power. In oligopoly industries government regulation and enforcement of industrial and social regulation curtail the few firms controlling the market from the possibility of setting unfair prices, limiting competition and collusion resulting in low quality, lower production and higher prices.
B. 2. A monopoly is the single supplier of a commodity. A natural monopoly such as public utilities where a single supplier of electricity is of economies of scale are regulated for rates preventing harm to society. Private monopolies are a violation of the antitrust acts/industrial regulation. Industrial
The Sherman Act of 1890 was the first legislation aimed at declaring restraint of trade and monopolization to be illegal.
With the Sherman Act being somewhat vague the Clayton Act of 1914 sought to further empower the Sherman Act by banning price discrimination, prohibiting tying contracts, interlocking directories and acquisitions that lessen competition.
Additional legislation in 1914 was the Federal Trade Commission Act which created the Federal Trade Commission commonly known as the FTC. With a shared responsibility the FTC and the U.S. Department of Justice enforce the Sherman Act and Clayton Act. The FTC also examines unfair completive practices and methods issuing cease and desist orders.
In 1950 the Celler-Kefauver Act sought to remedy the gap in Section 7 of the Clayton Act by stopping the reduction of competition of one business by obtaining the physical assets of another competing business.
B. Government imposed antitrust acts/industrial regulations are to protect consumers of an industry’s actions pertaining to price and quantity preventing a monopoly to that end benefiting society.
B. 1. Oligopoly industries having a few large firms gain market power. In oligopoly industries government regulation and enforcement of industrial and social regulation curtail the few firms controlling the market from the possibility of setting unfair prices, limiting competition and collusion resulting in low quality, lower production and higher prices.
B. 2. A monopoly is the single supplier of a commodity. A natural monopoly such as public utilities where a single supplier of electricity is of economies of scale are regulated for rates preventing harm to society. Private monopolies are a violation of the antitrust acts/industrial regulation. Industrial