The government policy that deals with the maintenance or restoration of
competition in markets.
A collusive arrangement among sellers that affects the level of their
joint output and thus the price that they charge.
A law passed in 1950 that covered asset acquisitions and eliminated the
wording that made the Clayton Act applicable only to horizontal
mergers.
A law passed in 1914 to deal with four types of potentially
anticompetitive business practices: price discrimination,
mergers, exclusive dealing and tying arrangements, and
interlocking directorates.
Markets that are very easy to enter and leave so that potential
competition can be relied upon to prevent monopoly pricing.
An anticompetitive situation that exists when a firm obtains the product
of a certain supplier on the condition that it will not buy the
products of competing sup pliers.
A government antitrust agency established in 1914 by the Federal Trade
Commission Act; its duty is to investigate and prosecute cases
of unfair competition.
A law passed in 1914 that outlawed unfair methods of competition such as
corporate spying, boycotts, and bribery, and created the Federal
Trade Commission to investigate and prosecute cases of unfair
competition.
The potentially anti competitive situation when the same person serves on
the boards of directors of two or more competing firms or when
two or more directors of one firm sit on the boards of competing
firms.
Regulation that covers a firm's level of output, its price, and the scope
of its production.
A market in which a single seller is required for efficient production.
The opportunity cost of a firm; the minimum amount that it must earn in
its industry in order for it to remain in that business.
Price cutting aimed at forcing competitors out of business.
A government- owned business; often a monopoly.
A privately owned company that is provided by the government with a
monopoly position in its market.
The variation in rates that are charged according to such variables as
customer classification, quantity purchased, and time of delivery.
Firms that are granted monopoly status by government and then become
subject to monopoly regulation.
The length of time it takes a regulatory commission to bring about a rate
change that reflects a regulated company's change in average
total cost.
The method of determining the value of a firm's capital by estimating
what it would cost to replace it.
A law passed in 19 3 6 that amended the section of the Clayton Act that
deals with price discrimination.
A line of reasoning used by the Supreme Court that was based on the
belief that substantial monopoly control alone is not against
the law but that the intent to gain that control and the abuse
of it make it illegal.
A law passed in 1890 that prohibits monopolization and combinations in
restraint of trade.
Regulations most firms are subject to, such as environmental protection
rules, food and drug rules, truth-in-packaging rules, and
occupational health and safety rules.
An arrangement whereby supposedly competing firms avoid competition
through a central board of trustees that votes all their stock.
A potentially anticompetitive practice that forces to buy certain pro
ducts along with certain products.
An amendment to the Federal-trade Commission Act passed in 1938 that
prohibited unfair or deceptive acts or practices aimed at the
consumer.
