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Discussing Antitrust Regulations

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Discuss how the Sherman Act, the Clayton Act, or any other subsequent antitrust regulations must be considered in each of the following situations:

a. Mergers, consolidations, and/or acquisitions.

b.Price setting, price control, and/or discussing information for purposes of competitive bidding for contracts, goods, or services.

c. Considerations of trustees in determining medical staff privileges.

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a. Mergers, consolidations, and/or acquisitions.

If there is a merger, consolidation or acquisition, the competition law requires that there should not be concentration of economic power in the hands of a few. The Clayton Act has regulations related to mergers. Section 7 and Section 7a. must be considered. Section 7 allows the Federal Trade Commission and Department of Justice to regulate all mergers and gives the government discretion to approve a merger or not. The government usually applies the Herfindahl-Hirschman Index and if it is above a certain level the merger, consolidation or ...

Solution Summary

This solution provides a response of just under 350 words, discussing the role of antitrust regulations in various situations. A list of references has also been included and should act as a useful source of information for further research.

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Discussion Question

Answer the following question in your own words without quoting anyone:

Why do industrial economies find it necessary to have antitrust regulations?
Include in your answer a discussion of the different types of mergers, and
alternatives if any, to antitrust policy.

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