Chapter 9, Problem 23AA

To determine

To state: The difference between antitrust legislation and government regulatory agencies.

Answer to Problem 23AA

The main purpose of the antitrust legislation law is to maintain fair competition in the market.

Explanation of Solution

Antitrust legislation are the laws that are developed by U.S. government to guard consumers from anti-competitive business practices. The main objective of such laws so as to maintain fair competition in the market. Such laws are applied to a number of anti-business activities like monopolies, price fixing, bid rigging etc. If these laws didn’t exist, consumers would have to face unfair competition in the market like higher price for products and services etc.

The main objective of the federal regulatory agency is that they implement laws. Regulations are the set of rules that are imposed on businesses. Regulations are significant as they provide a set of direction and instructions to the businesses to perform. It structures the operations of the business. Had regulations not been imposed on the businesses, many companies can indulge themselves in unethical practices.

Economics Concept Introduction

Introduction: Antitrust legislation are the laws that are developed by U.S. government to defend consumers from anti-competitive business practices whereas a regulatory agency is a government body formed to derive control on the business.