...A. Summarize the four major pieces of legislation collectively known as the Antitrust Laws. Antitrust laws were put in place to make business’s compete fairly. These fall into four main areas: agreements between competitors, contractual arrangements between sellers and buyers, the pursuit or maintenance of monopoly power, and mergers. The four major pieces of legislation collectively known as the Antitrust Laws are; the Sherman Antitrust Act, the Clayton Antitrust Act, the Federal Trade Commission Act and the Celler-Kefauver Act of 1950. The Sherman Antitrust Act has two categories that are targeted; ○ to restrain or prevent trade among states or foreign nations ○ prohibit against monopolies. ○ Only the United States Department of Justice has the power to prosecute individuals who are suspected of violating this act, (unless the individual state has the power granted by its own antitrust legislation.) The Federal Trade Commission Act ○ created the Federal Trade Commission ○ gave the Commission the power to enforce United States Antitrust legislation. The Clayton Antitrust Act ○ passed to prohibit mergers and acquisitions when those would substantially lessen competition. ○ enabled state attorney generals the ability to prosecute and enforce federal antitrust laws. ○ outlawed price discrimination, regulated stock acquisitions, and tying contracts ○ The Robinson - Pitman Act amended the Clayton Antitrust Act by banning...
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...Nicholas Messina Econ201 What are some of the different types of barriers to entry that give rise to monopoly power? Give an example of each. Should government let monopolists exist or not? What are the benefits of monopoly market structure and what are those shortcomings related to monopoly? What is your opinion? (At least two pages and write down the answers to each question asked) In a perfectly competitive market, there are many firms, none of which is large in size. In contrast, in a monopolistic market there is only one firm, which is large in size. This one firm provides all of the market's supply. Some conditions that determine a monopolistic market is the fact there is only one firm competing and has entire control over supply of product with no close substitutes. The second is that there must be a high barrier to entry to explain why other firms have not yet entered the market. What are some of the different types of barriers to entry that give rise to monopoly power? Barriers to entry are defined as legal, technological, or market forces that may discourage or prevent potential competitors from entering a market. There are many different types of barriers that include government barriers, control of a physical resource, technological advancements, and large start-up costs. Governments may erect barriers that prohibits or severely limits new competitors. This is done in many cities and states that may allow a household to only use one certain energy, water...
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...the market structure there are lot many variations as well determine the particular market structure in the economy. Task 1 : You are required to identify different types of market structure , and explain how market structure determine the pricing and output decision of business : There are many types of markets: * Perfect competition * Monopolistic competition * Oligopoly * Monopoly * Duopoly Perfect competition Perfect competition can be described as competitive depends in part on how many suppliers are seeking the demand of consumers and with a new businesses can enter and exit a particular market in the long run. In a market economy, competition occurs between large numbers of buyers and sellers who vie for the opportunity to buy or sell goods and services. Perfect competition exists when there are so many people in the market, and other conditions are such, that no-one can influence the price, all other things being equal. Monopolistic competition is when a large number of firms sell closely related but not homogenous products. There are three ways: * There are many buyers and sellers * Entry and exit are easy * Firms take other firms price as given Oligopoly is when there are a few large suppliers, and business decisions affect each other. Monopoly is a business environment in which a single company, by controlling a specific supply of products or service, set prices, prevents other business from entering the market and controls the available...
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...| TUTOR MARKED ASSIGNMENT Course Code | BBM501/03 | Course Title | Economic Environment of Business | Student Name | Yong Shio Ping, Alene | Student ID No. | 041110362 | Student IC No. | 780205-14-6346 | Name Of Tutor | Pn Malar Arasi A/P Sundaram | Class Code | 4ENV1 | TMA No. | 1 | TMA Submission Date | September 5, 2011 | PART A (Case Scenario) (a) Elaborate on the causes of sugar price hike as discussed in the article above. [8 marks] The article as reported by Andrew Clark indicates that the main cause of the sugar price increase in the global commodity market occurred due to a simultaneous drop in the overall supply of sugar by the world’s largest sugar producer, Brazil, alongside a change in the supply and demand of the world’s largest consumer of sugar, India. In the case of Brazil, the world’s largest sugar producer, the drop in the supply of sugar occurred due to a period of heavy rain, as well as the decision to channel a large portion of sugarcane, an input into the production of sugar, into another industry, ethanol fuel production, hence significantly reducing the availability of this input to sugar production. Figure 1.1 below illustrates S1 as the original supply curve of sugar, and S2 as the new supply curve of sugar which has shifted to the Left. This shift to the left is caused by a decrease in sugarcane supply, an important input to sugar production. The effect is an increase in the Price of sugar due to a decrease in the quantity...
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...at the University of Tampa. The thesis of the whole book is to convince the reader that both drug trafficker and their political allies were consummate opportunities. As long as there is a demand for drugs and drugs in demand are illegal, traffickers will seek out and establish alliances with politicians. The drug trade is not the product of a global conspiracy and there is no central command and control and no master plan to destroy and population or group. The thesis of the book is significant. Based on opportunists’ point of view, the authors wrote all the chapters from a relative objective point of view, which means that they treat the origin, spread, development, and the fall of drug trade as the result of supply, demand, profit and power. The book “Webs of Smoke” contains an introduction and eight chapters and a conclusion at the end. Each chapter is relative independent from each other. The introduction part, “Men in the Shadows” talks about the background of narcotics business and the origins of the opium trade. Chapter one, “Bureaucrats” talks about the international debate on illicit trade in China and some international organizations like League of Nations. Chapters two, “Merchants” focus on how Shanghai and Yunnan became a...
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...CHAPTER 10 MARKET POWER: MONOPOLY AND MONOPSONY R.KANAKARAJU 215112019 A.GOUTHAM SAI 215112020 B.R.PRADHEEP 215112027 M.PRABHAKAR 215112058 K.ADITHYA 215112063 NAGENDRA 215112069 MARKET POWERS: MONOPOLIST AND MANOPSONIST Markets comprises of products or services, buyers and sellers. Where as in a perfectly competitive market there will be a reasonably good number of buyers and sellers of the products or services. So the possibility of influencing the market by a single seller or buyer is nil. Depending upon the supply and demand prices will be determined. Market price and demand is the deciding factor of the companies to estimate how much to produce and sell, in consumers view it is a deciding factor how much to buy. In contrary to the case which was discussed above, if the market is not a perfectly competitive market then the situations of monopoly and monopsony arise. Monopoly market is the one which has only one seller but so many buyers. Monopsony market is the one which has only one buyer and so many sellers. Monopolist is the sole producer of a product, in market demand curve, price is determined by the quantity which is offered by the monopolist to sell, the quantity of produce sold by monopolist is low and the price is high, it happens because his products has full demand and he wants to take full advantage in this situation. Normally if the price is high, only a few buyers which have the potential to buy those...
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...owned by private shareholders who can choose the buyer of their shares. Public company shares are listed on the stock market, which means that they have to comply with the rules of the stock market and any member of the public can buy shares in the company. 2 An excess of sales receipts over the spending of a business during a period of time, which can be calculated using the formula: profit = revenue – costs. 3 At any level of output, revenue is calculated by multiplying output by the price at which each unit of output is sold. In perfect competition, because it is always possible to increase sales revenue by selling more units of output, the revenue-maximising level of output does not exist. In other market structures, including monopoly and oligopoly, marginal revenue falls as more units of the good are sold. Revenue maximisation occurs at the level of output at which marginal revenue is zero (MR = 0). By contrast, in all market structures, including perfect competition,...
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...GOVERNMENT REGULATION IS GOVERNMENT MONOPOLY: THE EXAMPLES OF BRITISH AGRICULTURE AND THE BRITISH STOCK EXCHANGE SEÁN CRONIN Pretty much everyone agrees that monopolies — government-run or government-backed, coercive controls over the production, distribution or purchase of particular categories of product or service — are bad for society, i.e. for pretty much everybody. One only has to remember the record of British Leyland — a government industrial monopoly that did considerably more damage to the British motor industry than the Luftwaffe — to see that monopolies are harmful.1 The only exception to this generally agreed belief seems to run along the lines of “all monopolies are bad except when I or my friends are in control ”, which helps to explain why monopolies are so popular with governments. So this essay will not attempt to argue that monopolies are bad, any more than it will attempt to argue that the earth is round. The point I wish here to make is that monopolies, because they are so much more numerous, are accordingly causing much more harm, than is commonly thought. I will focus on two examples, both of which show a monopoly in action and doing great harm, even though at first glance there doesn’t appear to be any monopoly at all. EVERY GOVERNMENT REGULATORY AGENCY IS A MONOPOLY The first example is the long running saga of BSE. Bovine Spongiform Encephalopathy is a disease suffered by British beef cattle during the nineteen eighties and nineties, which is believed...
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...will focus on is the continued use of fossil fuels as the primary energy source by our global economy: regardless of the proven adverse impacts, from our reliance on these nonrenewable resources; and in consideration of the circumstances regarding the existence of viable alternative sources of energy, given the application of equivalent technologies applied to their systems of conversion. The focus of this paper is not to identify evidence of the negative impacts realized because of fossil fuel use, in order to prove these problems are in fact produced. Confirmation has been granted through several other research projects, in regards to those problems and aspects included within the scope of this research project. As for those problems or related aspects excluded in the scope of this project, debate does exists; along with there being variations present in the range of impacts believed to be associated with fossil fuel use. That is, the limits of my research were configured according to the impacts that are evident regardless of opposing viewpoints and variations in perspective. The study will not include research that supports that viable alternative, renewable energy sources are available either. This would be redundant as well considering the practical applications in use throughout the world, diverting any debate that may exist to the alternative sources in theory. Specifically, the three main impacts that define the environmental issue of my focus include: the economic...
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...INTEL CASE - Explain Intel's strategies and their evolution in time. - Analyze critically Intel's strategies. Bob, Gordon and Andrew established in California in 1968 a world famous company: Intel. At the beginning, this company produced semiconductor memory chips; however, as we will explain during this paper Intel’s production shifted into other fields. The main strategy Intel had was innovation the design of the product and being the first ones to achieve the market with the newest devices. This strategy entailed that the company was positioned at the cutting-edge in investments and infrastructure. Therefore, Intel invested a large amount of money in R&D, and underwent a strong investment in manufacture equipment in the beginning of the firm. This strategy positioned Intel were differently than the rest of competitors, always trying to achieve the first position in the competition. However, the first two products (1101 and 3101), introduced in 1969, did not succeed. In 1971, Intel managed to produce the world best selling semiconductor memory chips. In the years that followed, Japanese companies achieved to overtake to Intel with DRAMS semiconductors, these being more efficient, fast and cheaper than Intel’s. Later on Intel created the second generation of microprocessors and IBM entered in the microcomputers market with the PCs. Within this framework , Intel had to compete with Motorola and establish an alliance with IBM. Then, Intel developed Project Crush...
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...FREE MARKET ECONOMY According to Pmiranda2857 (2009), the free market economy is an economy which promotes competitions between businesses. Basically, without this market system, consumers would not have a say in price determination of goods and services. Some consumers in some African countries have suffered with regards to pricing. According to Baye (2010), consumers do not have a say in the price determination of some services because the providers of such services enjoy the market monopoly. However, the free market economy is the best and only realistic alternative for determining the allocation of resources in an economy because of the following: i. Competition (Pmiranda2857, 2009; Rothbard, n.d.). Without competition, the free market economy will not be what it is supposed to be. The competition between the producers is the driving force in this market, providing the consumers with the most favourable product at the most affordable price. According to Pmiranda2857 (2009), a new product is priced high in the market. After sometime, the major competitors in the market begin to imitate the innovation in the market. This leads to price reduction in the once expensive product since new and similar products begin to emerge. Pricing therefore becomes a sensitive issue in competition. Rothbard (n.d.) also concluded that competition leads to the betterment in the standards of the market competitors compared to other markets. ii. It promotes entrepreneurship and innovation (Pmiranda2857...
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... 2012 * Organization environment overview * Organizational environment & environmental domain * Environment of the solar power industry Two key forces in the environment: Information: uncertainty & contingencies of formal design Resources: dependence and inter-organizational linkages 3 LENSES In environmental organization To understand formal lens from the environment structure: acts as a dependent. To respond by implementing different types of organizational system to match. Having a spefic purpose. Network perspective not just competing and collaborating with each other. Independent activities in their external environment. Building bridges and linkages to stakeholders that they act in their environment. Culture lens is about having beliefs what they should like and what should they do. Desirable what is normative and decide what they should do and what they look like. Conformity gets them access to what the look like which is called legitimacy. What is organizational environment? In northern Ontario, they are known for oil sands and it is hard to get extraction and it was too expensive and technologies …. Extraction is becoming more feasible and opportunity to take advantage. NEW THREATS come in the horizon; it deals a great deal of pollution. It greatest more positive than negative sources. Sectors of the organizational Environment Elements that effect the environment. 1. Industry sector: look at the different competitors...
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...The Microsoft Antitrust Case* by Nicholas Economides** Revised April 2, 2001 Abstract This paper analyzes the law and economics of United States v. Microsoft, a landmark case of antitrust intervention in network industries. The United States Department of Justice and 19 States sued Microsoft alleging (i) that it monopolized the market for operating systems of personal computers and took anti-competitive actions to illegally maintain its monopoly; (ii) that it attempted to monopolize the market for Internet browsers because such browsers would create competition for operating systems; (iii) that it bundled its browser (Internet Explorer) with Windows; and that it engaged in a number of other anti-competitive exclusionary arrangements with computer manufacturers, Internet service providers, and content providers attempting to thwart the distribution of Netscape’s browser. The District Court Judge found in most points for the plaintiffs and ordered the breakup of Microsoft into two companies, one with all the operating systems software, and one with all other products of the company. The District Court also imposed a number of severe restrictions on the business conduct of Microsoft. We analyze the economic issues related to liability. We also analyze the applicability and effectiveness of the remedies imposed by the District Court and contrast them with other potential remedies. * Forthcoming in Journal of Industry, Competition and Trade: From Theory to Policy (August 2001)...
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...EU and post-Soviet countries – pay increasing attentions to the ways this company operates. This paper outlines the constraints faced by the Russian government and Gazprom management and lists options that these two players can employ transforming Russian energy might into economic benefits. PhD economics (University of Western Ontario) and senior trade analyst (Ottawa). E-mail: ivanenko60@yahoo.com 1 1 Introduction The natural gas sector is the least reformed and, apparently, the most successful industry in the Russian economy. Unlike the oil extraction sector –which was broken up and privatized in the early 1990s – natural gas production and distribution networks were preserved, with few exceptions, in the state-controlled monopoly Gazprom. Correspondingly, the Russian gas industry avoided ruinous warfare that the oil barons – former insiders and well-connected newcomers – waged fighting for control, ownership, and export quotas. Likewise, the natural gas sector was largely spared the troubles that befell on some oil majors (e.g. on YuKOS) which did not fall in line after the state changed its policy on energy resources in 2003. It is unsurprising that Gazprom is at the spearhead of the current Russian search for a decent place in the global division of labor. Russians appear to have come to a firm consensus that their country needs to be integrated into the world economy but they are less certain about what economic activities Russia should focus on. Exploring comparative...
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...------------------------------------------------- Analysis of an organisation’s Business Environment ------------------------------------------------- ------------------------------------------------- Submitted To: ------------------------------------------------- Submitted By: Date of Submission: Executive Summary: Before setting up business organization, the owner or the manager of that organization decides which function the business organization has to perform and design its objectives. After those organizations have to decide about which strategies they use to achieve these objectives. There are some internal and external parties involved with large or even small business organization known as stakeholders. Stakeholders may be shareholders, managers or employees, customers, suppliers, lenders, and government. They have some objectives also. Organizations are responsible for their objectives. Organizations are also responsible to the society, and their customers. Every organization should concern about the business and cultural environment. Understanding the business and cultural environment organization can find out its strength, weakness, opportunity, and threats. Knowing these organization can overcome the threats and weakness and can go global. Through international trade organization can easily import or export goods and services which help to increase their economic conditions. Objective of British...
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