Question.3092 - Question: Antitrust Practices and Market Power Research authoritative articles using the news and the DeVry Online Library (http://library.devry.edu) for a recent case of antitrust investigation. You are free to choose a case from any industry and any part of the world. Based on the case you have selected, answer the following questions. 1. Why was/were the firm(s) investigated for antitrust behavior? 2. Identify some of the costs (pecuniary and nonpecuniary) associated with the antitrust behavior (firms having power in the market). Additionally, note the specific antitrust act (Sherman Act, Clayton Act, etc.) under which the violation was investigated. 3. Given your research and findings, are monopolies and oligopolies (firms demonstrating power) always bad for society? Be sure to provide real world examples of where this may be the case to strengthen your position. 4. Provide at least one example of a case where having a monopoly or oligopoly may actually benefit the society. Based on your findings to the questions listed above, write a report with a minimum of 300 words in essay format in APA style (use the APA template in Doc Sharing), using correct economic terms covered in the discussions. If you ONLY write 300 words, you probably won’t be able to fully answer the questions. Key concepts to include in your paper include the following. ? Monopoly Market Structure ? Oligopoly Market Structure ? Barriers to Entry Into the Market ? Natural Monopoly ? Government Monopoly ? Downward Sloping Demand Curve ? Economies of Scale ? Price Fixing ? Collusion ? Monopoly Pricing ? Price Maker ? Market Power ? Economic Profits ? Imperfect Competition ? Rent-Seeking Behavior ? X-Inefficiency ? Deadweight Loss to Society ? Marginal Cost ? Marginal Revenue ? Antitrust You must use at minimum at least one article from the DeVry Online Library. Note: Although your textbook is a good source of knowledge, it is NOT an article and cannot be the only source for the assignment. Cite all your references in APA format. You can use the Citations & Bibliography function of Microsoft Word, which is found under the References tab. Submit your assignment to the Dropbox located on the silver tab at the top of this page.
Answer Below:
Antitrust xxxxxxxxx and xxxxxxxxxxxxxxxxxxxx Practices xxx Market xxxxx Market xxxxx is xxx key xxx antitrust xxxxxxxxxxx to xxxxx in xx save xxxxx consumers xxxxxxxx The xxxx quot xxxxxx power xxxx refers xx the xxxxxxx of x firm xx a xxxxx of xxxxx acting xxxxxxx to xxxxx price xxxxx the xxxxxxxxxxx level xxxxxxx losing xx many xxxxx so xxxxxxx that xxx price xxxxxxxx is xxxxxxxxxxxx and xxxx be xxxxxxxxx Such xxxxxxxxx primarily xxxxxx in x monopoly xx oligopoly xxxxxx structure xxxxxx structure xx defined xx the xxxxxxxxxxxxxx and xxxxx characteristics xx a xxxxxx The xxxx important xxxxxxxx of xxxxxx structure xxx number xx firms xxxxxx share xx the xxxxxxx firms xxxxxx of xxxxx degree xx which xxx industry xx vertically xxxxxxxxxx extent xx product xxxxxxxxxxxxxxx structure xx buyers xx the xxxxxxxx There xxx four xxxxx market xxxxxxxxxx Monopoly xxxxxxxxx perfect xxxxxxxxxxx and xxxxxxxxxxxx competition xxxxxxxx is x form xx market xxxxxxxxxxxx for x commodity xxxxxxx services xx which xxxxx is xxxx one xxxxxx seller xx the xxxxxxxxx product xxxxxxxx to xxxxx there xx no xxxxx substitute xxx degree xx competition xx nil xxxxxxx due xx strong xxxxxxxx to xxxxx and xxx seller xxxxxxxx the xxxxxx to xxxxxxxxx A xxxxxxxxxx is x price xxxxx as xx holds x large xxxxxx of xxxxx over xxx price xx charges xxx concept xx market xxxxx is xxxxxxxxxxx in xxx figure xxxxx where x monopolist xx shown xxxxxxx price xx the xxxxx on xxx downward xxxxxxx demand xxxxx where xxxxxxxx cost xxxxxx marginal xxxxxxx rather xxxx as xxxxx competition xxxxxx the xxxxxx price xx given xx the xxxxxxxxxxxxxxxxx monopoly xxxxx Pm xxxxx exceeds xxxxxxxx cost x by xxx vertical xxxxxxxx between xxx demand xxx marginal xxxx curves xx the xxxxxxxxxx s xxxxxx Qm xxxx is xx Pm- x The xxxx of xxxxxxxxxxx or xxxxxxxxx competition xxx give x monopolist xxxx incentive xx invest xx new xxxxx Even xx the xxxxxxxxxx benefits xxxx economies xx scale xxxx have xxxxxx incentive xx control xxxxx costs xxx X xxxxxxxxxxxxxx will xxxx that xxxxx will xx no xxxx cost xxxxxxx compared xx a xxxxxxxxxxx market xxxxxxx M xxxxxx and xxxxxxx A xxxxxx Market xxxxx In xxxxxxxxx Cases xxxxxxxxx from xxxx academico xxxxxxxxxxx fgv xx ccmw xxxxxx e xxxxxx e xxxxxx - xxxxxx Power xxxxxxxxxxxx Practices xxx Market xxxxx If xxx industry xx taken xxxx by x monopolist xxx profit-maximising xxxxx Marginal xxxx Marginal xxxxxxx is xx price x m xxx output x m xxx monopolist xx able xx charge x higher xxxxx restrict xxxxx output xxx thereby xxxxxx welfare xxxxxxx the xxxx in xxxxx to x m xxxxxxx consumer xxxxxxx Monopoly xxxxxx also xxxxxxxxx rent xxxxxxx behaviour xxxx seeking xx usually xxxxxxx as xxx political xxxxxxxx of xxxxxxx or xxxxxx seeking xxxxxxxx rights xx privileges xxxxxxx by xxx government xxxx privileges xxxxxxx subsidies xxx breaks xxxxx supports xxxxxxx import xxxxxx and xxxxx entitlements xxxxxxx these xxxxxxxxxx are xxxx to xxxx two xxxxx of xxxxxx costs xxxxx the xxxxxxxxxx themselves xxxxxxxxx a xxxxxxxxxx loss xx consumers xxxxxx the xxxxxxxxxxx of xxxxxxxxx on xxxxx pursuit xxxxxxxx represents x rent-seeking xxxxxx cost xxxxxxx of xxx more xxxxxxxxxx alternative xxxx for xxxx resources xx the xxxx several xxxxxxxxx have xxxx investigated xxx their xxxxxxxxx behaviour xx account xx having xxxxxxxxxxxx business xxx instance xxxxxxxx Tobacco xxxxxxx was xxxxx violating xxx federal xxxxxxx Antitrust xxx of xx seeking xx monopolize xxxxxxxxxxx all xxxxxxx of xxx tobacco xxxxxxxx and xx order xx promote xxxxxx competition xxxx firms xxxx created xxxx the xxxxxxxx Tobacco xxxxxxx s xxxxxx On xxx other xxxx monopolistic xxxxxxxxx has x positive xxxxxx also xx the xxxx of xxxxxxx Monopoly x natural xxxxxxxx comes xxxxx due xx economies xx scale-that xx due xx unit xxxxx that xxxx as x firm x production xxxxxxxxx When xxxxxxxxx of xxxxx are xxxxxxxxx relative xx the xxxx of xxx market xxx firm xxx produce xxx industry x whole xxxxxx at x lower xxxx cost xxxx two xx more xxxxx could xxxxxxxxx public xxxxxxxxx such xx water xxxxxxxx and xxxxxxxxxxx The xxxxxx market xxxxxxxxx which xx actively xxxxxxxxx by xxxxxxxxx authorities xx the xxxxxxxxx An xxxxxxxxx is x market xxxxxxxxx in xxxxx a xxx firms xxxxxxxx When x market xx shared xxxxxxx a xxx firms xx is xxxx to xx highly xxxxxxxxxxxx Although xxxx a xxx firms xxxxxxxx it xx possible xxxx many xxxxx firms xxx also xxxxxxx in xxx market xxx example xxxxx airlines xxxx British xxxxxxx BA xxx Air xxxxxx operate xxxxx routes xxxx only x few xxxxx competitors xxx there xxx also xxxx small xxxxxxxx catering xxx the xxxxxxxxxxxx or xxxxxxxx specialist xxxxxxxx The xxxx characteristics xx firms xxxxxxxxx in x market xxxx few xxxxx rivals xxxxxxx interdependence xxxxx the xxxxx and xxxxxxx strategical xxxxxxxxx such xx whether xx compete xxxx rivals xx collude xxxx them xxxxxxx to xxxxx or xxxxx price xx keep xxxxx constant xxxxxxx to xx the xxxxx firm xx implement x new xxxxxxxx or xxxxxxx to xxxx and xxx what xxxxxx do xx such xxxxxxx antitrust xxxxxxxxxxx primarily xxxx for xxxxxxxxx or xxxxx fixing xxxxxxxx the xxxxxxxxxxx Commission xx India xxxxxxx fine xx the xxxxxx cement xxxxxxxxx for xxxxxx together xxxx limited xxxxxxxxxx and xxxx attempted xx control xxx production xxx fixing xxxxx in xxx market xx India xxxxxxxx and xxxxxxxxx Are xxxx always xxx Mark xxxxx Is xxxxxxxx Rent xxxxxxx Compatible xxxx Wealth xxxxxxxxxxxx Retrieved xxxx lawreview xxx edu xxxxxxxx gli xxx David x Henderson xxxxxxx Monopoly xxxxxxxxx from xxx econlib xxx library xxx Monopoly xxxx Antitrust xxxxxxxxx and xxxxxx Power xxxx because xxxxxxxx is xxx in x theoretical xxxxxxxx sense xxxxxxx does xxx mean xxxx it xx illegal xxx in xxxx there xx nothing xxxxxxx in xxx antitrust xxxx than xxxx pure xxxxxxxx attained xxxxxxxx is xxx prohibited xxxx thought xx sometimes xxxxxxxxx by xxxxxx when xxxx say xxxx monopoly xxxxx that xxxxxxx only xxxx growth xx development xx a xxxxxxxxxxx of x superior xxxxxxx business xxxxxx or xxxxxxxx accident xx not xxxxxxxxxxxxx United xxxxxx v xxxxxxxx Corp x S xxxx monopolies xxxx in xxxxxxx forms xxxxxxxxx innovation xxxxxxxxx research xxx development xx technology xxx pharma xxxxxxxxx Natural xxxxxxxx encourages xxxxxxxxx of xxxxx in xxxxx electrical xxxxxxx Government xxxxxxxxx controlled xxxxxx of xxxxxxxxx In xxxxxx the xxxx way xxx a xxxx to xxxxxx a xxxxxxxx outside xxxxxxxxxx sponsorship xx to xxx the xxxxxxx of xxxxxxxxx by xxxxxxxx prices xxx creating x more xxxxxx product xxxx competitors xxx of xxx real xxxxx examples xx a xxxx monopoly xxxxx helped xxx society xxx of xxxxxxxx Oil xx the xxxxxx States xx was xxxxxxxx Oil xxxxx introduced xxx usage xx oil xx an xxxxxxxxxx way xx light xxxxxx s xxxxx in xxx evening xxxxx was xx far xxxxxx than xxxxxxx and xxxx By xxx mid x whale-oil xxx unaffordable xx most xxxxxx and xx the xxxxxx that xx could xxxxx homes xxx an xxxxxxxxxxxxx source xx light xxxxxxx of xxx size xx the xxxx it xxx able xx undertake xxxxxxxx which xxxxxxxxx companies xxxxx never xxxxx upon xxx it xxxxxxxxxx innovation xxx invention xx the xxxxxxx developed xxxxxxxx ex- xxxxxxxx out xx its xxxxxxxxxx waste xxxxxxxxxx John x Stelzer xxxxx M xxxxxxxxx Laws x Primer xxxxxxxxx from xxxxx University xxxxxxx David x Mayer xxx Good xxx Bad xxx the xxxx Retrieved xxxx http xxx netplaces xxx economics xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx the-good-the-bad-and-the-ugly xxx Chernow xxx Titan xxx Life xx John x Rockefeller xx Retrieved xxxx http xxx h- xxx org xxxxxxx showpdf xxx id xxxxxxxxx Practices xxx Market xxxxx Other xxxxxxx references xxxxxxxx Klein xxx Hub-And-Spoke xxxxxxxxxx That xxxxxxx The xxxxxxxx Oil xxxxxxxx Christopher x Leslie xxxxxxxxxx The xxxxxxxxxxx History xx Standard xxx Geoffrey x Manne xxx Joshua x Wright xxxxxx And xxx Limits xx Antitrust xxx Case xxxxxxx The xxxx Against xxxxxxMore Articles From Economics
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