The provision of the Sheman Act and Clayton Act.
Explanation of Solution
The Sheman act of 1890 is the first antitrust law which is introduced with the aim of prohibiting monopolization and restrains trade in the
Anti-trust laws: The anti-trust laws are the laws that are enacted in order to prevent the illegal and unfair practices that help in the creation of market powers such as the monopoly and monopsony in the market.
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Chapter 13 Solutions
ECONOMICS FOR TODAY (LL)-W/MINDTAP
- Answer the given question with a proper explanation and step-by-step solution. Why is it important for the United States to have laws such as the Sherman Antitrust Act and the Clayton Antitrust Act? Can you describe corporations today that are taking such a large part of market share that it's difficult for smaller companies to enter the market?arrow_forwardExplain the Clayton Antitrust Act (1914).arrow_forwardHow antitrust policy and industrial organization is related?arrow_forward
- In contrast to the Sherman Act, the Clayton Act of 1914 a. was more general, outlawing monopoly or attempting to acquire a monopolyb. identified specific practices that were illegalc. made interlocking directorates legal as long as they were reasonabled. invalidated the concept of "illegal per se"e. made cartels legal English Common law became the basis for American Common Law. What does the Common Law say about damages for parties injured by restraint of trade? a. They are not permittedb. Damages can be awarded in full to injured partiesc. Triple damages are awarded to injured partiesd. Only a fraction of damages will be awarded due to statutory restrictionse. The government could sue for damages on behalf of injured parties, and then give them damages net of taxes Some capital equipment such as a moving assembly line only comes in one size. This usually tends to create a. a significant diseconomy of scale at the plant level b. a significant diseconomy of scale at the firm level c.…arrow_forwardThe Sherman Antitrust Law was originally designed to prevent the formation of large corporations or cartels that could dominate the market. (T/F)arrow_forwardThe Sherman Antitrust Act, enacted in 1890, was used to suppress the formation of large trusts and cartels, which dominated the market and acted to fix prices and restrain free trade. (T/F)arrow_forward
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