Egt1 Task 3

In: Business and Management

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A. Sherman Act (1890) is meant to prevent activities that a business may do that the federal government regulators believe to be anticompetitive. The Act maintains that the federal government is to examine and track trusts, companies, and organizations suspected of being in violation. It was the first federal statute to limit cartels and monopolies. (Sherman Antitrust Act, 2014)
Clayton Act provides clarification to the Sherman Act of 1890. It is meant to encourage competition with businesses within the United States, discourage formation of monopolies, and prohibit price discrimination, price fixing and unfair business practices. (Clayton Antitrust Act, 2014)
Robinson-Patman Act (1936) prohibits a business from selling the same item to one company for a different price while selling the same item to another company for a different price. This protects smaller businesses by limiting the large company's ability to command discriminatory discounts through its purchasing power. (Robinson-Patman Act, 2014)
Federal Trade Commission Act enforces the other three antitrust laws by preventing unfair competition and deceptive practices. This act discourages businesses from entering into unlawful competition.
B1. Industrial regulation deals with the government regulation of a business pricing in certain markets. It helps to decrease the control of oligopolies, prevent conspiracy and increase competition among companies. This regulation helps the consumer know that oligopoly businesses are prevented from charging unfair prices. B2. The justification for industrial regulation is to prevent monopoly power from becoming abusive. This regulation allows the consumer to benefit from the reduced price of a natural monopoly (public utilities) while avoiding the cut in yield linked with an free monopoly. The government tries to form rates which cover the…...

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