...EGT1 Task 3 There are four major pieces of antitrust laws passes the Sherman Act of 1890, the Clayton Act of 1914, the Federal Trade Commission Act of 1914, and the Celler-Kefauver Act of 1950. The Sherman Act of 1890 prohibited the conspiracy to restrain trade or commerce, it also made it illegal to monopolize and part of trade or commerce. The Clayton Act of 1914 outlawed price discrimination, the tying of contracts, the acquisition of stocks from a competing company, and the formation of interlocking directorates. The Federal Trade Commission Act of 1914 which established a five member commission which had authority from the U.S. Justice Department to enforce the antitrust laws and investigate firms for compliance. The Celler-Kefauver Act prohibits a firm from buying stock from a competing company with the goal of merging with that company. An oligopoly market is where there are a few large producers of a product or service. Since there are only a few companies competing in an oligopolists market any type of change that one company does will directly affect one of or all the other companies. A monopoly is where a single company is the only producer of that product or service where there are no substitutes. Industrial regulation affects companies who are an oligopoly in many ways because the company has to be very careful how it inters acts with the companies in the same market, since there are only a few other companies competing in their market. These companies...
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...EGT-1 Task 3 Revised A. Summarize the four major pieces of legislation collectively known as the Antitrust laws. United States antitrust law is a collection of federal and state government laws, which regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers. The four major pieces of legislation known as the Antitrust Laws include: The Sherman Act, The Clayton Antitrust Act, The Federal Trade Commission, and the Celler-Kefauver Act. The Sherman Act was created in 1890 had two major provisions which was to prohibit conspiracies to restrain trade and also to outlaw monopolization. In 1914 the Clayton Act was passed to expand off of the Sherman Act. The Clayton Act strengthened the Sherman Act in several ways: price discrimination, typing contracts, acquisition, and interlocking directorates. In 1914, the Federal Trade Commission Act (FTC) was created to enforce antitrust laws and the Clayton Act in particular. The FTC investigates unfair competitive practices and when appropriate issues cease-and desist orders. In 1950 the Celler-Kefauver Act was created to close the loophole the was left available from the Clayton Act’s Section 7. This clause was put in place to stop a firm from acquiring stocks in a competitive firm in order to merge. The Celler-Kefauver Act closed that loophole in order to prevent any firm from reducing the competition. (McConnell 375) B. Discuss the intended purpose of industrial...
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...A. The federal government put together the antitrust laws as a way to make businesses compete fairly. These laws prevent monopolies, fixed pricing, they regulate trade and commerce and promote ethical production of products and services, at reasonable price points. The four major pieces of legislation that make up the antitrust laws are? The Sherman Antitrust Act, The Clayton Antitrust Act, the Celler-Kefauver Act of 1950, and the Federal Trade commission act. The Sherman Antitrust Act focuses on restraint and prevention of trade between foreign nations, prohibition of monopolies, and is the only US department of Justice that has the power to prosecute people that are in violation of this act. The Clayton Antitrust Act was passed to prohibit acquisitions and mergers that would lessen competition between companies, enabled state attorney generals the ability to prosecute and enforce federal antitrust laws. It also outlawed price discrimination, regulated stock acquisitions and tying contracts. The Clayton Antitrust Act was amended by The Robinson-Pitman Act that banned discriminatory business practices. The Celler Kefauver Act of 1950 was passed to regulate the acquisition of firms that were not in direct competition and limited mergers that would lessen competition in the market place. The Federal Trade Commission Act created the actual Federal Trade Commission and gave the commission the power to enforce US Antitrust legislation. B. The intended purpose...
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...In this paper, I will be summarizing legislation known as the Antitrust Laws, identifying the purpose of industrial regulation, social regulation and natural monopolies. I will help explain how and why each exists and their impact on society. In addition, I will also explain the three main regulatory commissions of industrial regulation, and finally explain the major functions of the five primary regulatory commissions as they govern social regulation. There are four major pieces of legislation that prevent monopolies from occurring, these are collectively known as the Antitrust Laws. These laws help foster competition. The first law is the Sherman Act of 1890; this law prohibits monopolization and anything that might prevent trades such as fixed pricing and agreements between firms. The second law is the Clayton Act of 1914; which prevents price discrimination and manipulative contracts. This act also makes sure a company’s board of directors cannot serve on a direct competitor’s board of directors, and prevents companies from buying stock from direct competitors as well. The third is The Federal Trade Commission Act that was created in 1914, and then amended in 1958. This act was created to enforce anti-trust legislation, when it was amended in 1958 to protect consumers from false advertisement and products bought due to misleading information. The Celler-Kefauver Act of 1950 amends the Clayton Act of 1914 by closing loopholes firms used to acquire the assets of a company...
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...A. There are four key sections of the federal legislation; known as the Antitrust laws that corresponds to the monopoly structure and conduct within the basic law. These laws are: the Federal Trade Commission Act, 1914, Clayton Act, 1914, Sherman Act, 1890, and the Celler-Kefauver Act, 1950. The Sherman Act is, “The Federal antitrust law of 1890 that makes a monopoly planned to restrain trade criminal offenses” (McConnell G-26). The Clayton Act is, “The Federal antitrust law of 1914 that strengthened the Sherman Act by making it illegal for firms to engage in certain specified practices” (McConnell G-3). The Federal Trade Commission Act is, “The Federal antitrust law of 1914 that strengthened the Sherman Act by making it illegal for firms to engage in certain specified practices” (McConnell G-3). The Celler Kefauver Act is, “The Federal law of 1950 that amended the Clayton Act by prohibiting the acquisition of the assets from one firm to another firm when the effect would be less competition” (McConnell G-2). (“Section 7 of the Clayton Act had a loophole whereby firms could accomplish their purpose by acquiring the physical assets rather than stock of a competing company” (McConnell G-2)). B. An Oligopoly is “A market dominated by a few large producers of a homogeneous or differentiated product” (McConnell 195). An Oligopoly has charge of its personal prices, output, and marketing choices. A pure monopoly comes into effect if a one firm is the only creater of a manufactured...
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...Industrial regulation is governmental oversight, guidelines, and enforcement designed to ensure protection of consumer pricing, approve mergers and acquisitions, and regulate market share activities related to a specific industry in order to promote competition and achieve allocative efficiency (McConnell, Brue & Flynn, 2011). Industrial regulation provides protection to the consumer by preventing the development of monopolized industries that allow for no consumer choice. The three main regulatory commissions of industrial regulation in the United States are: 1) Federal Trade Commission; 2) Federal Communication Commission; and the 3) Federal Energy Regulatory Commission. Federal Trade Commission. The Federal Trade Commission (FTC) investigates consumer complaints and concerns regarding unfair competition, fraud, and misleading practices in the marketplace. Federal Communication Commission. The Federal Communication Commission (FCC) is an independent agency of the United States governed by five presidentially-appointed commissioners. The commissioners serve a maximum term length of five years and no more than three commissioners can be affiliated with the same political party. The FCC is responsible for regulating communications in or initiating from the US. Communication channels that the FCC has jurisdiction over include television and radio airwaves, satellite and cable transmissions, and telegraph communications. The FCC was formed by Congress with the Communications...
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...A. Summarize the four major pieces of legislation collectively known as the Antitrust Laws. United States antitrust law is a collection of federal and state government laws, which regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers. The main statute was the Sherman act of 1890, it is the basis for U.S. antitrust law, and many states have modeled their own statutes upon it. As weaknesses in the Sherman Act became evident, Congress added amendments to it at various times through 1950 the Clayton act of 1914, the Federal Trade Commission act of 1914, and the Robinson-Patman act of 1936 . These acts, first, restrict the formation of cartels and prohibit other collusive practices regarded as being in restraint of trade. Second, they restrict the mergers and acquisitions of organizations which could substantially lessen competition. Third, they prohibit the creation of a monopoly and the abuse of monopoly power. B. Discuss the intended purpose of industrial (i.e., economic) regulation as it applies to the following market structures: 1. Oligopoly An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher costs for consumers. [1] Alternatively, oligopolies can see fierce competition because competitors can realize large gains and losses at...
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...Competency 309.1.3: Competition 1 Competency 309.1.3: Competition Western Governors University Competency 309.1.3: Competition Competency 309.1.3: Competition 2 A. In the years following the civil war, large trusts formed among key industries. These large monopolies were able to set prices, restrict output, and pressure resource suppliers. At the end of the nineteenth century the government began to intervene with the introduction of antitrust legislation (McConnell, 2011, p. 375). The first of the major antitrust laws was the Sherman Act of 1890. The Sherman Act served two purposes. First it outlawed restraints on trade. This made it illegal for trusts to work together setting prices or dividing markets. The goal was to end collusion that would cause economic gain for the parties involved and harm the consumer. The second part of the law outlawed monopolization. The act gave the courts the power to financially penalize and potentially imprison offenders, as well as the ability to break up the monopolies (McConnell, 2011, p. 375). The Sherman act was a good start, but was too ambiguous and didn’t achieve the goals it was intended for. The Clayton Act of 1914 expanded upon its framework. Where the Sherman Act was aimed at eliminating current monopolies, the Clayton Act served to prevent new monopolies from organizing. It had several sections that made illegal the acts of price discrimination and the tying of contracts. It also mad it unlawful...
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...correctly held that three evidence of actual confusion that Lamborghini presented are insufficient to prove likelihood of confusion. This Court should affirm the district court’s summary judgment to AEV because Lamborghini only presented isolated instances of confusion, which negates likelihood of confusion. The evidence of actual confusion is the “most important factor in assessing a likelihood of confusion.” Gen. Motors, 453 F.3d at 356. In analyzing the evidence of actual confusion, courts may consider the: 1) number of products sold in relation to the number of instances of the confusion; 2) channel used in expressing the consumer’s confusion and the degree of care used by consumers in choosing the channel of communication used; and 3) amount of time that elapsed between the beginning of the marks’ concurrent use and the first evidence of confusion. Therma-Scan, 295 F.3d at 635. In Therma-Scan, this Court analyzed all the abovementioned considerations in holding that the evidence of actual confusion that plaintiff presented did not show a likelihood of confusion. Id. at 636. This Court found that six misdirected emails were legally insignificant because plaintiff’s operations from January 1997 to July 2000 showed that 3,200,000 ear thermometers were sold. Id. at 635. This Court also held that the consumers’ use of email implies that the consumers were “inattentive or careless, as opposed to being actually confused” because the consumers could have carelessly searched for...
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...A needs analysis survey was conducted targeting doctors from all grades to assess their needs for a communication skill course. (explained in a separate section above) 2. Demographic data, including age, sex, country of qualification, mother tongue and grades was collected 3. 45 minutes of practical sessions was delivered which was a combination of lecture and practice sessions using audio-visual aids. 4. Each candidate filled a confidence rating sheet prior to the course. 5. Each candidate was exposed to up to four scenarios, covering; breaking bad news, explaining a disease process, talking to an angry relative and a medico-legal issue. 6. The candidates were marked on the standard MRCP UK examination assessment sheet with slight modification of the marking system as explained above. 7. Each assessor wrote his/her feedback on the sheet along with the marks and data to be collected. 8. Individual feedback was given by the course coordinator. 9. Collective feedback was given to the whole group at the final stage...
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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...
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...SUBDOMAIN: 309.1 -‐ ECONOMICS Competency 309.1.3: Competition The graduate analyzes a firm’s competitive environment to determine whether the market exhibits characteristics of perfect competition, monopoly, oligopoly, and monopolistic competition. Objective 309.1.3-‐06: Describe how the need for governmental price regulation differs for firms in different competitive environments. Date: February 9, 2015 A) The Anti-‐Trust Laws Sherman Act (1890) The Sherman Act came about due to a growing public resentment of trusts. The antitrust legislation is broken down into two parts: • Section 1 “Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared to be illegal.” Section 2 “Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the trade or commerce among the several states, or with foreign nations, shall be deemed guilty of a felony” (Brue, Flynn, & McConnell, 2012) ...
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...EGT1 – TASK GUIDE INTRODUCTION: As you work on each of the Tasks please make use of the various resources posted and updated within the Business Undergraduate Economics Learning Community Task 1 Recorded Webinar TASK 1: MARGINAL ANALYSIS This Task centers on the competency of marginal analysis with two structured objectives. First is the requirement to describe the relationship between marginal revenue (MR) and marginal cost (MC) at the point of profit maximization. Second is the requirement to explain the concept of profit maximization. ACTIONS OF APPROACH: 1- Prior to turning in the Task, consider attending a Live Webinar on the Task. Students that attend are much more likely to pass the Task. You can always find an updated schedule of Live Webinars in the Community Pages (link at the top of this document). 2- This essay should be relatively short (1-3 pages) and can be written entirely from the concepts discussed within the McConnell e-text. In preparing for this Task you should read Chapters 7-11 of the McConnell e-text, with specific concentration on the information in Chapters 7 & 8. *Chapter 7 "Business and the Costs of Production" *Chapter 8 "Pure Competition in the Short Run" Chapter 9 "Pure Competition in the Long Run" Chapter 10 "Pure Monopoly" Chapter 11 "Monopolistic Competition and Oligopoly" 3- Formulate your responses to this Task in accordance with an “outline” format. More specifically, when writing your paper – list the Task Element and structure your...
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...EGT1 – TASK 1 Western Governors University EGT1 Economics and Global Business Applications Element A1 & A2 A1. Total revenue (TR) to total cost (TC) is cost, which is calculated using total revenue minus the total cost, (TR-TC). As each unit is produced, the total cost increases in addition to the total revenue. Yet, at some point in the production of the additional units, the total revenue will exceed the total cost. When it reaches that point, it becomes a loss. The point when profit maximization is the largest is bolded in the table below. |QTY |TR |TC |TR-TC | |0 |$0.00 |$100.00 |-$100.00 | |1 |$131.00 |$190.00 |-$59.00 | |2 |$262.00 |$270.00 |-$8.00 | |3 |$393.00 |$340.00 |$53.00 | |4 |$524.00 |$400.00 |$124.00 | |5 |$655.00 |$470.00 |$185.00 | |6 |$786.00 |$550.00 |$236.00 | |7 |$917.00 |$640.00 |$277.00 | |8 |$1,048.00 |$750.00 |$298.00 | |9 |$1,179.00 |$880.00 |$299.00 | |10 |$1,310.00 |$1,030.00 |$280.00 | A2. Marginal revenue...
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...EGT1 Task 2 Supply and Demand A. Elasticity of demand refers to the level of reaction that consumers will have to a change in price of a product. Elasticity of demand has 3 categories or results from the equation. The equation used to determine elasticity of demand is the percentage of change in quantity of demand divided by the percentage of change in price. After this equation is calculated you will need to compare the answer or coeeficient with the critical threshold. For elasticty of demand the critical threshold is 1. If the result is a number higher than the number one than the product will be said to be elastic. If the product is determined to be elastic than it is sensitive to price and consumers will react more by buying less of the product. Elastic products have a rate of more than one. If the result of the equation is lower than the number one than the product is said to be Inelastic. These products are considered less price sensitive than those that are elastic meaning that the reaction of less sales from consumers will be smaller than in a situation where a product is elastic. Finally, if the result of the equation is equal to the number one then the product is considered unit elastic. This occurs when any percentage change in price results in the exact same change in quantity demand. This is very rare and does not occur often. B. Another type of elasticity to measure is cross price elasticity. Cross price elasticity measures the consumer...
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