EGT1 Task 3

Oligopolistic markets, such as supermarkets or car manufacturing, can be defined in terms of market structure or in terms of market conduct.

1819 - The Supreme Court holds that a state cannot tax the federal government in McCulloch v.

During the Progressive Era, Regulatory Agencies fail to provide and do their work, legislation ere made with the purpose for the common good of the citizen that suffer from the big corporation abuse, most of the corporation state strict rule but never got to accomplish them or the personal was too much expensive. The Supreme Court during the United State v Knight Company state diminished the effectiveness of the Sherman Anti-Trust act by ruling that manufacturing was not an interstate commerce (Document 5). The Federal Trade Commission, an independent agency of the United State government, established in by the Federal Trade Commission Act. Its principal mission was the promotion of consumer protection and the elimination/prevention of anti-competitive

The Sherman Antitrust Act was enacted on July 2nd, 1890 which prohibits activities that restrict interstate commerce and competition in the marketplace.

    With all that information, let’s talk more about the Clayton Act. Clayton Act (2)is an amendment passed by U.S. Congress in 1914 that provides further clarification and substance to the  Sherman Antitrust Act of 1890 on topics

To understand antitrust immunity, one must understand the different tests the United States Supreme Court has applied to state’s agencies and boards to determine immunity. Courts largely use two tests to determine whether an entity has immunity from antitrust laws. Both tests provide the same immunity, but they require the entity seeking the immunity to prove different requirements. The first test is the sovereign actor test, and it provides immunity to state actors using sovereign power. The second test, known as the Midcal test, asks whether the entity seeking immunity is following a clearly articulated state policy, and whether the entity is actively supervised by the state. Both of these tests are

The antitrust laws ban unlawful mergers and business practices in broad terms, leaving courts to choose which ones are illegal based on the details of each case. Courts have applied the antitrust laws to varying markets, from a time of picking blackberries to texting on them. Yet for over one hundred years, the antitrust laws have had the same fundamental purpose: to keep the practice of competition for the benefit of customers, making sure there are strong incentives for businesses to function efficiently, keep prices down, and keep quality up.

The Harper Review defined competition as ‘the process by which rival businesses strive to maximise their profits by developing and offering desirable goods and services to consumers on the most favourable terms’. The purpose of competition policy is therefore to protect, enhance and extend competitive conduct. Competition Law aims to combat certain anti-competitive practices that interfere with the efficiency of markets to the detriment of both consumers and other suppliers.

“An athlete is not crowned unless he competes according to the rules” (2 Timothy 2:5). Antitrust laws have been in place since the 1600s. The laws were first introduced in England. In the United States they were not put into practice until after the Civil War. Such laws were not needed due to the lack of large business, but after the Civil War, industry in the United States began to grow. It was feared the larger companies would overtake the smaller businesses and be in control. As a result, a Senator, named Sherman, established the antitrust law called the Sherman Act (Tudor, 2012).

Antitrust law in the United States is a collection of federal and state government laws regulating the conduct and organization of business corporations with the intent to promote fair competition in an open-market economy for the benefit of the public. Congress passed the first antitrust statute, the Sherman Antitrust Act, in 1890 in response to the public outrage toward big business. In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act and the Clayton Act. (The Antitrust Laws. Web.)

There are two main traditional arguments: broad regulations are required to support economic security and provide protections against bad actors; and deregulation promotes economic growth while free market competition should provide the necessary protections. Chen (2016), describes complex formulas for public utility and other profit regulated industries; posing a middle ground. All of these views are too narrow to account for the many associated

When one wants to set up his/her own business, he/she has to come up with market structure they will use.

The four defined market structures include perfect competition, monopoly, monopolist, and oligopoly. Although firms within these four different structures compete within the economic market together, each have their distinct characteristic. Perfect competition includes producers who all produce the same good. When looking at perfect competition you will see that both the buyers and sellers are price takers. The agricultural market is one of the few perfectly competitive markets. A monopoly consist of one product being sold by one seller. In a monopoly one firm controls the market. Monopolies have high entry barriers eliminating competition and product duplication. If an artist has the ability to produce original sculptures that no one can duplicate, then they have a monopoly.

Market structure is best described as the authoritative and different parts of a business sector. A perfect competition industry framework is one that involves various little venders and purchasers while a monopolistic competition relates to an industry foundation that has attributes of rivalry and imposing business model. A pure monopoly model industry base contains a solitary maker or supplier of an item or an administration that has no nearby substitutes while Oligopoly is an industry framework that is commanded by a set number of firms that capacity autonomously of each other.

The government regulation will regulate the market economy to reduce the negative externalities (Aghion, Algan, Cahuc, & Shleifer, 2010).