Question

Reflect on the following questions (Explain with practical example example):

How important to economic growth is the constraint of market power through antitrust legislation? How much market power is too much for a firm to enjoy? How is market power best measured?

Note, I dont want any answer copy from website , or answer available before in chegg. Type your answer but not writ on paper

Answer 1

ANTITRUST LEGISLATION INTRODUCTION:

The legislation of antitrust insurance the strong competition exist in the market along with the protection to the consumers. an charity is made in regard to high quality products and a favorable competition that is a justifiable competition goes on between the different producers. The standards are made enough hai so that there could not be any compromise with the quality and the production is sufficient enough to meet the needs of the market.

Market power is a situation in which market has a dominant position over the other markets. having a strong Market by implies having a strong control over the domination of the price of different products. having a strong mein market pavilion ply having a strong control of the profits of the entire market. IfIf taken in Indian context it is about 51% of the shares to hold the market and if if consideration is given to the US scenario it is about 40% of the share that is considered to be a dominant position for any of the markets.

For measuring the power or market by the method is used most preferably is competition ratios competition ratios measure for topmost markets contributing to the total industrial output.

FEW EXAMPLES:

1.) if in the industry of smartphones someone has to be given the credit of controlling the market bar it goes to iPhone aur apple.in c.in. all the Apple cannot completely control the market but it has a strong market power over the entire smartphones economy because a single change in the price of Apple will reflect the entire smartphone industry at a large scale so it is having a control or a market Pak over other industries in the the smartphone sector.

2. In monopolistic market brand number of different from selling the different products in the same industry so the industries which provides most qualitative and effective products have this market power. Examples are different restaurants, hotels at etc

Market power can be measured by different methods are the shares that are being existing in the market in the norms fixed by different governments

for India antitrust laws have been implemented over and if we take into consideration the US there have been three basic antitrust legislations number one is THE SHERMAN anti trust act of 1890, the federal trade commission act and Clayton antitrust act.