EGT1 Task 3

“For example, the federal government regulates the quality of food and water, the safety of workplaces and airspaces, and the integrity of the banking and finance system.” (Bianco, Canon 2011, p 582) Regulations find out if the product is a market failure. There are two types of regulations, which are economic and social. “Economic regulations sets prices or conditions on entry of firms into an industry, where as social regulation address issues of quality and safety.” (Bianco, Canon 2011, p 582) Economic regulations are concerned with the price regulation of monopolies.

1942 - In Wickard v. Filburn, the Court rules that the federal government has the power to regulate economic activity under the Constitution's Commerce Clause.

During the Progressive Era, Regulatory Agencies fail to provide and do their work, legislation ere made with the purpose for the common good of the citizen that suffer from the big corporation abuse, most of the corporation state strict rule but never got to accomplish them or the personal was too much expensive. The Supreme Court during the United State v Knight Company state diminished the effectiveness of the Sherman Anti-Trust act by ruling that manufacturing was not an interstate commerce (Document 5). The Federal Trade Commission, an independent agency of the United State government, established in by the Federal Trade Commission Act. Its principal mission was the promotion of consumer protection and the elimination/prevention of anti-competitive

    With all that information, let’s talk more about the Clayton Act. Clayton Act (2)is an amendment passed by U.S. Congress in 1914 that provides further clarification and substance to the  Sherman Antitrust Act of 1890 on topics

Antitrust law in the United States is a collection of federal and state government laws regulating the conduct and organization of business corporations with the intent to promote fair competition in an open-market economy for the benefit of the public. Congress passed the first antitrust statute, the Sherman Antitrust Act, in 1890 in response to the public outrage toward big business. In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act and the Clayton Act. (The Antitrust Laws. Web.)

The Sherman Antitrust Act was enacted on July 2nd, 1890 which prohibits activities that restrict interstate commerce and competition in the marketplace.

What is the goal of antitrust liability? Antitrust laws are designed to protect competition in markets. Early in the nation’s history, there was widespread fear of the dangers of monopolies and other restrictions on competition. In 1890, Congress passed the Sherman Antitrust Act in order to prevent limits on competition caused by private parties. Thus the main goal of antitrust law is to preserve “economic freedom” and a “free-enterprise system.” Specifically, it attempts to preserve “the freedom to compete” for businesses. In a practical sense, antitrust laws are seeking to prevent burdens on competition in the marketplace.

Justice, U. D. (2008, 12 03). Sherman Anti-Trust Act of 1890. Retrieved from Society for Human Resource Management:

The United States antitrust legislation is a legislation designed to break up and prevent the formation of new monopolies to increase competition and societal welfare. Thus the United State Antitrust law is a collection of both state and federal government laws enacted to promote fair competition in the economy. The antitrust laws main statutes consist of the Sherman Act of 1890, the Clayton Act of 1914 and the Federal Trade Commission Act of 1914. In combination these acts have enforced the proper rules and regulations that businesses must conform to today to ensure that there is a healthy competition within the economy to not only the benefit of the consumers who utilize these services and goods but for the health of the businesses who make up our market industries.

Collectively there are four major pieces of legislation that make us the Antitrust Laws: 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 purpose of these acts and laws is to regulate trade and commerce by preventing unlawful restrictions, price fixing and monopolies; their goal is to promote competition and to encourage the production of quality goods and serves at reasonable prices while safeguarding the public welfare, while ensuring consumer demand is met via the production and sale of those goods at reasonably low prices. Enforcement of the antitrust laws depends largely on two agencies: the Federal Trade Commission (FTC) and the Antitrust Division of the U.S. Department of

There are two main traditional arguments: broad regulations are required to support economic security and provide protections against bad actors; and deregulation promotes economic growth while free market competition should provide the necessary protections. Chen (2016), describes complex formulas for public utility and other profit regulated industries; posing a middle ground. All of these views are too narrow to account for the many associated

The four defined market structures include perfect competition, monopoly, monopolist, and oligopoly. Although firms within these four different structures compete within the economic market together, each have their distinct characteristic. Perfect competition includes producers who all produce the same good. When looking at perfect competition you will see that both the buyers and sellers are price takers. The agricultural market is one of the few perfectly competitive markets. A monopoly consist of one product being sold by one seller. In a monopoly one firm controls the market. Monopolies have high entry barriers eliminating competition and product duplication. If an artist has the ability to produce original sculptures that no one can duplicate, then they have a monopoly.

Market structure is best described as the authoritative and different parts of a business sector. A perfect competition industry framework is one that involves various little venders and purchasers while a monopolistic competition relates to an industry foundation that has attributes of rivalry and imposing business model. A pure monopoly model industry base contains a solitary maker or supplier of an item or an administration that has no nearby substitutes while Oligopoly is an industry framework that is commanded by a set number of firms that capacity autonomously of each other.

When one wants to set up his/her own business, he/she has to come up with market structure they will use.

The government regulation will regulate the market economy to reduce the negative externalities (Aghion, Algan, Cahuc, & Shleifer, 2010).