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Mathematics & Economics
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Antitrust Practices and Market Power (Essay Sample)

Question: Antitrust Practices and Market Power Research authoritative articles using the news and the DeVry Online Library (http://library(dot)devry(dot)edu) for a recent case of antitrust investigation. You are free to choose a case from any industry and any part of the world. Based on the case you have selected, answer the following questions. Why was/were the firm(s) investigated for antitrust behavior? Identify some of the costs (pecuniary and nonpecuniary) associated with the antitrust behavior (firms having power in the market). Additionally, note the specific antitrust act (Sherman Act, Clayton Act, etc.) under which the violation was investigated. Given your research and findings, are monopolies and oligopolies (firms demonstrating power) always bad for society? Be sure to provide real world examples of where this may be the case to strengthen your position. Provide at least one example of a case where having a monopoly or oligopoly may actually benefit the society. Based on your findings to the questions listed above, write a report with a minimum of 300 words in essay format in APA style (use the APA template in Doc Sharing), using correct economic terms covered in the discussions. If you ONLY write 300 words, you probably won't be able to fully answer the questions. Key concepts to include in your paper include the following. Monopoly Market Structure Oligopoly Market Structure Barriers to Entry Into the Market Natural Monopoly Government Monopoly Downward Sloping Demand Curve Economies of Scale Price Fixing Collusion Monopoly Pricing Price Maker Market Power Economic Profits Imperfect Competition Rent-Seeking Behavior X-Inefficiency Deadweight Loss to Society Marginal Cost Marginal Revenue Antitrust You must use at minimum at least one article from the DeVry Online Library. Note: Although your textbook is a good source of knowledge, it is NOT an article and cannot be the only source for the assignment. Cite all your references in APA format. You can use the Citations & Bibliography function of Microsoft Word, which is found under the References tab. source..
ANTITRUST PRACTICES AND MARKET POWER Name Institution Affiliation Professor Date of Submission 1 When there a firm is believed to be taking part in antitrust behavior then it is probably involving itself in practices that are unfair and therefore giving it leverage against its competition. An investigation into a firm may seek to establish whether the firm is seeking an illegal form of collusion with some competitors in order to edge out other competing businesses. These firms are often investigated for sinister mergers after all the system can be thrown in disarray when big companies in respective fields or sectors start monopolizing a market or begin engaging in business practices that are unfair or at times unethical in nature. It is important that in a market that is freely competitive, every single business intends to attract customers through provision of products that are good at the best price (Clinard, et al., 1979). The Antitrust laws were crafted to cushion the market from these practices that are unfair or unethical because they could instill a monopoly and inculcate an unfair culture in business. The main reason for this is to protect the consumers against monopolies (Sutherland, 2002) that could do whatever they want to do while they (consumers) had little power to change the situation through imperfect competition. Moreover, competing firms must not collude to; for example, fix prices of products because that would be considered a violation of the regulations. 2 The Sherman Antitrust Act of 1890 applies to transactions that occur from state to state within US and it sort to establish a limitless trade environment devoid of monopolies or attempts to monopolize the trade markets. If is violated according to Areeda & Turner, (1975), the firm involved may be required to incur substantial fines when government enforces the penalties. The act prohibits combinations, contracts, and conspiracies between firm...
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