The provision of the Sheman Act and Clayton Act.
Explanation of Solution
The Sheman act of 1890 is the first antitrust law which is introduced with the aim of prohibiting monopolization and restrains trade in the
Anti-trust laws: The anti-trust laws are the laws that are enacted in order to prevent the illegal and unfair practices that help in the creation of market powers such as the monopoly and monopsony in the market.
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Chapter 13 Solutions
Micro Economics For Today
- In contrast to the Sherman Act, the Clayton Act of 1914 a. was more general, outlawing monopoly or attempting to acquire a monopolyb. identified specific practices that were illegalc. made interlocking directorates legal as long as they were reasonabled. invalidated the concept of "illegal per se"e. made cartels legal English Common law became the basis for American Common Law. What does the Common Law say about damages for parties injured by restraint of trade? a. They are not permittedb. Damages can be awarded in full to injured partiesc. Triple damages are awarded to injured partiesd. Only a fraction of damages will be awarded due to statutory restrictionse. The government could sue for damages on behalf of injured parties, and then give them damages net of taxes Some capital equipment such as a moving assembly line only comes in one size. This usually tends to create a. a significant diseconomy of scale at the plant level b. a significant diseconomy of scale at the firm level c.…arrow_forwardHow antitrust policy and industrial organization is related?arrow_forwardSome countries’ competition and antitrust policies are pro-competition and pro-consumer, whereas other countries’ policies are pro-incumbent and pro-producer. How do they differ?arrow_forward
- What is the advantage of Antitrust Law What is Antitrust Power What is consumer welfare standardarrow_forwardUnsure which is the correct answer The Clayton Act of 1914 classifies several business practices as illegal, including price discrimination and tying contracts, if they "substantially lessen competition or tend to create a monopoly." The Clayton Act of 1914 is an example of which of the following? Price regulations or antitrust lawsarrow_forwardIdentify the direct and indirect costs of government regulations as applied through competition policy?arrow_forward
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