Sub: Economics

Topic: Micro Economics

Question: The major pieces of anti-trust legislation.
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Describe each of the major pieces of anti-trust legislation.

Solution:
Describe each of the major pieces of anti-trust legislation. Major antitrust statutes (US) Sherman Act (1890): Section 1 prohibits “contracts" or “conspiracies" to restrain trade (price-fixing). Section 2 prohibits “attempts to monopolize" (anti-competitive and malignant single firm practices) Clayton Act (1914): Prohibits (1) Anti-competitive price discrimination; (2) tie-ins and exclusive dealing; (3) anti-competitive mergers; (4) interlocking directorates among competing firms. Robinson-Patman Act (1936): Prohibits firms from price-discriminating among its consumers (designed to protect small firms unable to obtain favorable deals with suppliers) Dept. of Justice Merger Guidelines: Guidelines to determine whether proposed mergers are anti-competitive (and should therefore be refused). Main enforcement agencies are the Federal Trade Commission and the Dept ** End of the Solution **
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