Question

Monopolistic Competition

Economists generally agree that U.S. antitrust policy is complex, changing over time, divided among several U.S. federal government agencies, and subject to frequent court reversals. The underlying question remains whether the U.S. needs more or less regulation of market structures.

Key questions are:

Are U.S. markets becoming less competitive because of mergers and acquisitions?

Are U.S. markets becoming more competitive because of new technology?

Are U.S. markets becoming more or less competitive because of globalization?

Is enough information available for wise antitrust enforcement?

**Note: Please provide a different answer from the other chegg answers of this same question. Thank you**

Answer 1

Are U.S. markets becoming less competitive because of mergers and acquisitions?

it has become clear from various reports and data that profits of big corporations have increased significantly due to mergers and acquisitions. These firms or corporation are involved in rent seeking activities. Hence, most of US market has become less competitive in market as big corporations are still earning super normal profits.

Are U.S. markets becoming more competitive because of new technology?

Technology has increased competition significantly across the world. But few firms are confining these innovations to themselves thereby harming competitive forces. Google and Facebook may misuse their expertise in near future.

Are U.S. markets becoming more or less competitive because of globalization?

There is no doubt that US market has been severely challenged by the MNCs from across the world. These firms have increased competition and consumers are being benefitted by such competition. Hence, few developed countries going with economic policies which is termed as the retreat from globalization.

Is enough information available for wise antitrust enforcement?

Anti trust law enforcement requires information to take informed decision. But information is not adequate due to complexities of production, demand and import from abroad.