Question

From 1979 to 1987, Kellogg introduced the following brands of cereal: Graham Crackos; Most; Honey & Nut Corn Flakes; Raisins, Rice & Rye; Banana Frosted Flakes; Apple Frosted Mini Wheats; Nutri-Grain; Fruity Marshmallow Krispies; Strawberry Krispies; Crispix; Cracklin’ Oat Bran; C-3PO; Apple Raisin Crisp; Fruitful Bran; OJ’s; Raisin Squares; Just Right/Nugget & Flake; All Bran with Extra Fiber; Apple Cinnamon Squares; All Bran Fruit & Almonds; Strawberry Squares; Pro Grain; Mueslix; Nutri-Grain Nuggets; and Nutrific.

a. Should the Antitrust Division of the Department of Justice be concerned?

b. Five other companies introduced a total of fifty-one new brands over that same period. Does this fact change you answer to part (a)?

Answer 1

a. Yes The Antitrust Division of the Department of Justice should be concerned. The Antitrust Division of the Department of Justice is an agency responsible for enforcing the antitrust laws. It works jointly with the FTC (Federal Trade Commission) to provide regulatory guidance to businesses. It also has the power to file criminal cases against willful violators of the antitrust laws. The Antitrust Division also works with competition regulators in other countries. It is a collection of federal and state government laws that regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers. Essentially, these laws forbid business practices that unreasonably deprive consumers of the benefits of competition, resulting in higher prices for products and services. It is developed to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy. The goal of the law is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace.

b. No this fact does not change my view.