In: Economics
11. List a briefly explain the primary anti-trust laws that deal with monopoly.
12. List several barriers to entry and explain the importance of them.
Anti-trust law is also named as "Competition Laws", it is a statutes which is developed by the U.S. government to protect consumers from predatory business practices and ensuring that fair competition exists in open market economy. In other Anti-trust law are supposed to pramote and protect competition in distinct "line of commerce" or "markets". the idea behind these law is that in every market there should be huge competition. vigrous competition in any market keeps the seller honest and forcing them to improve their goods an services and to offer them favorable terms. This is nothing other than the market place economics. The anti-trust law exist to help marketplace economics to work better.The laws treatment for monopolies is the strongest in the anti-tust law.In this law every person who shall monopolise or attempt to monopolise there trade among several states commits an offence. The anti-trust law prohibits conduct by a single firm that unreasonably restrains competition by creating monopolu power.
In theories of competition, a barrier to entery is a cost that must ne incurred by a new entrant into a market. In other words barrier to entery are the legal, technological market forces that discourageor prevent potential market to enter a market. In some cases, barriers to entery may lead to monopoly. and in other cases they may limit competition toa few firms. Barriers may block entery of the firms currently in the market who are earnings profits. There are two types of monopoly based on the types of barrier they exploit.
1)natural monopoly- where the barriers are other than legal prohibition.
2)legal moinopoly-where lawsprohibit competitions.
Some of the importance of antitrust law are:1) the main purpose of this law is to pramote and protect competition. 2) It seeks to ensure that industry is competitive with a number of manufactures or distributors. 3)
competition stimulates firms to lower their own cost and run their business effeciently. 4) The ultimate goal of antitrust law is to protect consumers purchasing power and save jobs.