2 Economy Questions??!!!?
Can someone help me answer this economy questions please thanks a lot. 1. Explain the issue in the courts interpretation of "monopoly versus monopolizing." 2. Based on antitrust laws, how would you expect the federal government to react to the following situations? a. A college bookstore deliberately reduces prices until its only rival is driven out of business. The bookstore then raises its prices. b. Real estate firms meet in an open meeting and agree to charge 6 percent commiion on sales. c. Microsoft merges with WordPerfect by a stock acquisition. d. A small tax preparation company merges with a regional grocery store chain. Thanks a lot for everyobodys help
Public Comments
- well the second question is easier. a. The Government can do nothing about this, businesses can charge what they wish. b. This is *probably* ok, but would depend on state regulations, and wouldn't violate fedreal government laws c. This would need Federal approval since these are large national coroporations that control a large portion of the market in word processing software. Ultimately it would probably go through since Word Processing is hardly a vital national industry, and there are many free alternatives. d. This would not violate antitrust laws since this is a lateral acquisition (the companies have nothing to do with each other.)
- Actually, John answered A B and C wrong. A. This can depend. If the book store sells books below cost in order to drive out business, it is considered anti-competitive and would be subject to antitrust laws, and can be found guilty quite easily. If it is still making a small profit on the books, it is extremely hard to prove, and thus would most likely not be charged. B. This is considered price fixing, and is very clearly defined and enforceable. C. This buyout would most likely be denied by the FTC. How vital it is to the economy has little importance, ammount of market share controled is the key factor.
