Question

Describe the US government’s strategies regarding antitrust laws of the different market structures.  

Answer 1

Often referred to as competition laws, antitrust laws are statutes enacted by the U.S. government to protect customers from predatory business practices. We make sure there is fair competition in an open-market economy. Such regulations have evolved alongside the market, protecting vigilantly against would-be monopolies and threats to the efficient ebb and flow of competition.

Antitrust laws refer to a wide range of questionable business practices, including market distribution, bid rigging, price fixing, and monopolies, but not limited to.

Today the discussion on the antitrust law targets continues. Of example, enforcement agencies assess mergers from both consumer-friendly and total welfare (consumer plus business) perspectives, partially because the courts are not consistent as to which requirement is acceptable under the Clayton Act. While it is clear that the Sherman Act was designed in part to protect customers from the inefficiencies of monopolies and cartels, it is notable that many economists were in opposition at the time of the Act's passage as they thought large business enterprises would be more effective.