The traditional profit maximizing theories of the firm have been criticised for being unrealistic. As a result‚ alternative theories of the firm were introduced (Sloman & Sutcliffe‚ 2001). One of the alternative theories of the firm is Growth maximization. Following are the main motives for the firms to grow: The cost motive: A growth maximising firm can lower its long run average costs by exploiting economies of scale and economies of scope. Economies of scale come into effect when increasing
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Stephanie Soliven 2 POL 1 The laws regarding regulation of cartels‚ trusts and monopoly in the market and overall regulation of the market in the USA were laid down in the USA‚ just as the US Constitution too was shaping up. The genesis of all this was in the Sherman Antitrust act in the year 1890. That act strove to control the market environment by putting a tight leash on trusts‚ organizations and companies which went against that act. To complement and strengthen this Sherman act‚ which later
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corporation benefits. In order to seize control of large corporations was to form a trust. The federal government passes a series of antitrust laws in order to have a successful economy. In order to stop the establishment of monopolies‚ the Sherman Antitrust law was passed in 1890 by Congress. The Supreme Court made the decision that contracts would be illegal if they formed an “unreasonable restraint of trade.” The Sherman Antitrust law “ provides that no person shall monopolize‚ attempt to monopolize
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Antitrust Practices and Market Power Introduction The purpose of this paper is to look into a case of antitrust behavior being investigated involving Johnson and Johnson and Novartis AG‚ and to analyze and discuss the various antitrust practices that the organizations involved are accused of utilizing. Its purpose is also to discuss how the practices being deployed in this scenario can help any of the organizations to secure market power‚ which is defined by the ability of a firm to
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Microsoft Antitrust Claims Steve Lopez BUS 670: Legal Environment Prof. Mark A. Cohen November 27‚ 2012 Antitrust Claims faced by Microsoft Valid Microsoft is a large diversified computer software manufacturer that produces the Windows family of operating systems for personal computers and servers. Bill Gates and Paul Allen founded the company on April 4‚ 1975. Microsoft is now the world’s largest software maker based on yearly revenue
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How does antitrust policy and regulation affect economic welfare? Antitrust policies and regulations placed by the government of the United States are geared for the competitive process. Several rulings on major companies have been made in order to have a set of guidelines of when a government intervention is needed. Government intervention acts like a regulator with goal of improving economic welfare‚ well at least in theory. By implementing antitrust policies governments decrease market powers
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Chapter Ten- The Shell and the Glasses 1. Why Piggy says that the killing of Simon was an accident‚ not murder‚ and that they are not to blame. To what extent do you think this is true? They are making excuses of even being there and they are all to blame 2. When Ralph says‚ “I’m frightened. Of us‚” what does he mean that frightens him? (Pg. 157) Just how savage they have become and they have actually committed murder 3. Are Sam‚ Eric‚ Ralph and Piggy being truthful about the events? No-
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The case against Microsoft was brought buy the U.S. Department of Justice‚ as well as several state Attorneys General. Microsoft is accused of using and maintaining monopoly power to gain an unfair advantage in the market. The case has been under observation for a long time‚ but the Justice department is having trouble coming up with substantial evidence against Microsoft. Specifically‚ the Department must prove:<br><li>That Microsoft has monopoly power and is using it to gain unfair leverage in
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government charged that Microsoft had violated antitrust law. Microsoft disagreed. Do you agree with the U.S. government‚ or with Microsoft? In answering this question‚ you may wish to address two issues. Was Microsoft a monopoly? Did it use its monopoly to compete unfairly against other companies? Commencing in 1990‚ Microsoft was investigated and then charged with violation of the Sherman Antitrust Act which governs United States businesses. The company was determined to be a monopoly‚ and one which
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WHY DO FIRMS GO PUBLIC? Forthcoming in the Oxford Handbook of Entrepreneurial Finance James C. Brau‚ PhD‚ CFA Professor of Finance Editor‚ Journal of Entrepreneurial Finance July 1‚ 2010 Department of Finance Marriott School Brigham Young University 640 Tanner Building Provo‚ Utah 84602 Phone: 801.318.7919 Fax: 801.422.0741 Electronic copy available at: http://ssrn.com/abstract=1649008 WHY DO FIRMS GO PUBLIC? Six months after he founded Netscape‚ Clark agitated for the company
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