EGT1 Task 3

1850 Words Dec 26th, 2013 8 Pages
WGU EGT1 Task 3 Student#
In this essay I will discuss a few terms and how their relationships apply between regulation and market structures, as well as how regulation policies affect the market.
A) There were 4 particular Antitrust Laws that were enacted with the primary purpose of protecting consumers, striving to achieve fair competition in the market place, and to achieve and allocate efficiency. The 4 Antitrust Laws that are major pieces of legislation are;
The Sherman Act of 1890
The Clayton Act of 1914
The Federal Trade Commission Act of 1914 (which also includes an Amendment known as the Wheeler-Lea Act of 1938)
The Celler-Kefauver Act of 1950 (which is an Amendment to the Clayton Act of 1914)

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The Celler-Kefauver Act of 1950 was an amendment to the Clayton Act of 1914 that particularly had to do with section 7 prohibiting competitive firms from merging and or from similar acts by one corporation from buying another corporations stock or physical assets (trying to act like a monopoly) which both lessen competition. The main purpose of this act was to prevent anti-competitive mergers and to close any loopholes.
B) The intended purpose of Industrial or Economic regulation as applied to Oligopolies and Monopolistic market structures is used to reduce the market power of both! A government commission regulates the prices charged by “natural monopolists.” Industrial Regulation is necessary to prevent natural monopolies from charging monopoly rates which may harm consumers/ society. Industrial Regulation tries to establish pricing that will cover production costs and provide a fair amount of return to businesses. Price=Average Total Cost, where normal profit is accomplished. (governs pricing, output, & profits in specific industries).
1) An Oligopolistic market structure is a structure where very few large businesses sell a particular standard Good or differentiated Good, and to whose market entry proves difficult. This in turn, gives little control over product pricing because of mutual interdependence (with the exception of collusion among businesses) creating a non-price competition meaning they are the ‘price setters’. A good rule to help classify an

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