9a. Name three ways in which the Antitrust laws make markets behave more competitively. 9b. What...

9a. Name three ways in which the Antitrust laws make markets behave more competitively.

9b. What is the difference between Section 1 and Section 2 of the Sherman Antitrust Act, discuss and define?

9c. Explain what the Herfindahl- Hirschman index is, and how it is used by the Department of Justice to decide which mergers to challenge.

Expert Solution

9a)

The market behaves competitively when there is antitrust law and it seeks to control the monopoly tendencies. Following are the ways:

The monopoly powers are controlled by the antitrust authority. Thus, competition remains strong in the economy.
The anti trust authority declares such combinations null and void that reduce the competition in the market.
Anti trust laws help to maintain the competition by protecting the small industries and firm against the predatory pricing.

9b)

Section 1 of the Sherman Act, concerned with the conduct of the business and conduct must not be anti-competitive, such as bid-rigging and price fixations.

Section 2 of the Sherman Act is related to the restraining the monopoly practices. Any attempt to make the market monopoly or part of market would be declared as the null and void.

9c)

HH- Index is used by the justice department if the market combination or merger leads to the monopolization of the market or not.

HH-Index is calculated by squaring the share of each firm. The value of HH-Index more than the 1700 would invite the strict action from the Justice departement.

Rahul Sunny answered 9 months ago

List the different ways the government can force monopolists to behave and price more competitively and...

List the different ways the government can force monopolists to behave and price more competitively and discuss the difference between Marginal Cost and Average Cost pricing between a natural monopolist and a regular monopolist.

List and explain three ways in which rules, laws or expectations make public policy tools used...

List and explain three ways in which rules, laws or expectations make public policy tools used to build Canada’s automotive manufacturing industry have changed. Explain how each of those changes make it more difficult for Canadian policy makers to influence investment decisions by global automakers.

What are some ways to make the document more professional?

There are three different ways to make a buffer. Which of the following is NOT one...

There are three different ways to make a buffer. Which of the following is NOT one of the methods? Select one: a. Adding equal amounts of a strong acid and a strong base b. Adding comparable amounts of the weak acid and its conjugate base to water c. Adding a limited amount of strong acid to a solution of weak base d. Adding a limited amount of strong base to a solution of weak acid

what are three ways in which our nations political process could be changed to become more...

what are three ways in which our nations political process could be changed to become more responsive to problems at home and abroad

Name three ways to identity which part of the Internal Revenue Code is relevant in a...

Name three ways to identity which part of the Internal Revenue Code is relevant in a research project.

Name and explain three ways in which momentum and kinetic energy are not conserved when they...

Name and explain three ways in which momentum and kinetic energy are not conserved when they should be.

Explain the ways in which aerobic respiration and fermentation processes are different. Name the three phases...

Explain the ways in which aerobic respiration and fermentation processes are different. Name the three phases of aerobic respiration and give the starting materials and end products of each phase. Describe a difference in the glycolysis pathways of bacteria and eukaryotic microorganisms. Describe how a bacterium uses an electrochemical gradient to generate ATP.

name and describe three pieces of equipment that make a care provider's work more convenient, efficient,...

name and describe three pieces of equipment that make a care provider's work more convenient, efficient, and timely

Financial markets operate with varying degrees of efficiency. What are the main ways in which the...

Financial markets operate with varying degrees of efficiency. What are the main ways in which the efficiency of financial markets and instruments are defined? Which markets are most efficient? Least efficient? Based on what measures? Why?

Question