Many countries have broad laws that protect consumers and regulate how companies operate their businesses. The goal of these laws is to provide an equal playing field for similar businesses that operate in a specific industry while preventing them from gaining too much power over their competition. Simply put, they stop businesses from playing dirty in order to make a profit. These are called antitrust laws. Antitrust laws also referred to as competition laws, are statutes developed by the U.S. government to protect consumers from predatory business practices. They ensure that fair competition exists in an open-market economy. These laws have evolved along with the market, vigilantly guarding against would-be monopolies and disruptions to the productive ebb and flow of competition.
Antitrust laws are applied to a wide range of questionable business activities, including but not limited to market allocation, bid rigging, price fixing, and monopolies. Below, we take a look at the activities these laws protect against.
If these laws didn't exist, consumers would not benefit from different options or competition in the marketplace. Furthermore, consumers would be forced to pay higher prices and would have access to a limited supply of products and services.
The Big Three Antitrust Laws
At their core, antitrust provisions are designed to maximize consumer welfare. Supporters of the Sherman Act, the Federal Trade Commission Act, and the Clayton Antitrust Act argue that since their inception, these antitrust laws have protected the consumer and competitors against market manipulation stemming from corporate greed. Through both civil and criminal enforcement, antitrust laws seek to stop price and bid rigging, monopolization, and anti-competitive mergers and acquisitions.
3. Analyze the impact of an anti-trust law on real wage and structural production in the...
3. Analyze the impact of an anti-trust law on real wage and structural production in the medium run. 3. Analyze the impact of an anti-trust law on real wage and structural production in the medium run.
PLEASE ANSWER ALL THE POINTS AND JUSTIFY THE ANSWER CLEARLY THANKS The government approves an anti-trust law that improves market competition by regulating anti-competitive conduct by companies. 3. a. b. c. d. How does this measure affect nominal wages and real wages in the short run? [3p] Explain how income, interest rate and price level have changed in the short run equilibrium. [4pl Explain the adjustment process from the short-run to the medium-run equilibrium. [4p] Does the capital and labor...
Explain what is meant by Market power as defined in the US Anti-trust Law in Sherman law 1 and 2? 9b. At what level does the US Government consider a firm for review for Anti-trust. 9c. Give three reasons why monopolies may exist and explain them briefly. 9d. Summarize the current Google anti-trust case.
Q) Is the current Anti-trust law outdated ? why? For example, Sherman Act of 1890 has only 769 words, if so, what reform is necessary for the current anti-trust law? Would be greatly appreciated if answered is in 5 sentences and by your own
How would your ideal anti-trust law differ in its analysis and handling of implicit and explicit collusion? Justify your answer. Explain the differences in how these types of collusion may present themselves to the courts. Are there any issues with handling implicit collusion more aggressively than the current law does?
3. Indicate which ones (one or more options can be true) of the following economic shocks will determine in the medium run an increase in the goods' price and a decrease in the bond's price. [4p] A purchase of bonds by the central bank i. A sale of bonds by the central bank A reduction in taxation by the government ii. iii The approval of a stricter anti-trust law iv. The reduction of unemployment benefits V. (motivate your answer) 3....
This question is on lewis model. Production in the modern gector Real Wage 2 kg of food Labor demand curve 20 Million workers kil) In the modern sector, where the production decisions are guided by profit motive, the real wage rate in the quantity of food is 2 kilograms per worker. Then, how many workers are employed in the modern sector? Recognize the area in the graph, which represents profit in the modern sector that can be invested to raise...
Case study of Monopoly Microsoft(MSFT) has been accused of violating the Anti-trust law time to time. MSFT had the legal problem with European Community(EC). Q1)Do you think Monopoly business practice is so bad for the general public's welfare? why? or why not? Explain based on cost and benefit analysis of social welfare.(0.5 point) Q2)Do you think FAANG companies are Monopoly? FAANG are Facebook, Apple, Amazon, Neflix and Google. Do you think Government should regulate and break up these FAANG companies?...
According to the long-run classical model, there will be a rise in real rental price of capital and a fall in real wage when the economy experiences an improvement in production technology and a fall in capital stock at the same time. True/False/Uncertain, explain with the aid of the rental market for capital and labour market diagrams.
3. Convert the nominal wage rates in the following table to real wage rates. The formula is Real (Nominal/Price Index) x 100, when you are converting a nominal number into a real number, getting rid of the effects of inflation, your resulting real number should be in the same units as the original nominal number. It should also be in the same general magnitude, unless you are going back hundreds of years of looking at a country that has experienced...