Antitrust Practices and Market Power Essay

835 Words Jun 22nd, 2013 4 Pages
Title page

Antitrust Practices and Market Power
Melissa Carey
Melissa_C06@hotmail.com
Content

Introduction………………………………………………………………………….........page 2

Investigation ……………………………….………………….………………………… page 2

Costs and Antitrust Act……………………………….………………….……………….page 2-3 Monopolies Bad for Society…………………………………………………………....... page 3-4 Conclusion………………………………………………………………………….......... page 4
References……………………………………………………………………………...... page 5

Antitrust Practices and Market Power
Introduction
This paper will discuss the antitrust law, specifically the Sherman Act of 1870. A claim was filed against the NCAA by the Governor of Pennsylvania for reasons that violate this act. It will also discuss monopolies and oligopolies,
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He claims that this power, or monopolization has caused the NCAA to threaten Penn State with the suspension of their football team altogether, which then lead to Penn State agreeing to the violations and accepting the “drastic but less painful sanctions” (citation) in order to hold onto some of their reputation.
The costs that are associated with this specific case are mainly targeted to the amount that Penn State’s football program generates annually. It has been claimed that Penn State impacts about “161.5 million statewide” not to mention the “$90million economic impact in Centre County alone” (Miller, 2013). James D. Schultz, Corbett's general counsel also stated that more than 2,000 jobs were also supported by this program; this alone is why the antitrust claim was investigated, due to the affect on Pennsylvania’s economy and on the citizens as a whole.
Monopolies Bad for Society?
After the proper amount of research, having monopolies and oligopolies are not always bad for our society. Sometimes they can provide the stability that our government and economy needs in order to create a low enough cost for production and overall beneficial. For example, most utilities are considered to be a positive monopoly. Electric and gas companies in particular are beneficial in having the government regulate the prices so that each individual would not have to be in charge of having their own generators or source of electricity that would
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