Question

Name at least two legislations to prevent monopolization of businesses. Do you believe these legislations have been helpful? Discuss.

Answer 1

a such 8 legislations are & Sherman Act. clayton Antitrust Act The clayton Act supplements the Sherman Act by prohibiting certain types of business practices that can potentially give rise to a monopolistic power such business practices. are: customer typing or exclusive dealing Price discrimination, competition - dilutine merger & acquisitions and prohibition of holding role of director in two or more firm which have significant post-merges. anti - competitive dilution effect. The Sherman Act penalizes deliberately conceived monopolistic powes that a firm can obtain by misuse of power with the intent of capruning market domnance.. However, of a firm get monopolistic advontage from natural or unintended means, they are excluded from the Scope of this legislation. The Sherman Act has been widely criticized due to its focus on anti - cartel regulation. Since forming of carrets had regulatory Prohibition by Sherman Act, firms started merger activities to exclude themselves. from forming castees & face the Sherman Aut consequences.

Plus, many Researcher or Economist beleine that Sherman Act has been anti consumes, anti – innovation which might have Stifled innovation stage Hotel WAT The Clayton Act, however has been effective in preventing anti competitive merger & acquistions to a big exrenting