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Economics 3

The study of government regulation and the competitive environment for business is relevant to all those who study business. All business candidates need to understand how the competitive environment will impact their employers and businesses.

Task:

A. Summarize the four major pieces of legislation collectively known as the Antitrust Laws.
B. Discuss the intended purpose of industrial (i.e., economic) regulation as it applies to the following market structures:
1. Oligopoly
2. Monopoly
C. Explain the major functions of the three primary federal and state regulatory commissions that govern industrial regulation.
D. Discuss the intended purpose of social regulation as it applies to all market structures.
E. Explain the major functions of the five primary federal regulatory commissions that govern social regulation.

Solution Preview

Hello;

It is my pleasure to provide you with some more notes in the area of economics. I will just go item by item for you.

Summarize the four major pieces of legislation collectively known as the Antitrust Laws

As has probably been discussed in your class, antitrust laws can be either created by state or national governments and they are designed to regulate trade and commerce. This is designed to prevent such activities as price fixing, monopolies, and unlawful restraints, among others. Over the years, four different major pieces of legislation have been enacted to form the basis for the antitrust laws in existence today.

Sherman Anti-trust Act of 1890 - This act formed the basis for U.S. .antitrust law dating back to the later 1800's. It prohibited certain business activities that federal regulators felt were limiting to the competitive nature of business. In addition, it required the federal government to investigate certain trusts, companies, and organizations that were felt to be in violation of this spirit of the law.

Clayton Act of 1914 - This act added more substance to existing antitrust legislation by aiming to prevent competitive violations from even occurring in the first place. In other words, this Act gave authorities more power to stop illegal regulatory activity before it even begins. The Clayton Act listed particular ...

Solution Summary

The expert summarizes the four major pieces of legislation collectively known as the Antitrust Laws.

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