Anti-Trust Case Essay

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United States vs. Paramount Pictures Prepared By: Twenika Huddleston Econ312 Professor Whalen-Ayyappan January 25, 2013 Table of Contents Introduction 3 Paramount Pictures Anti-Trust behavior 3 Sherman Anti-Trust Act 3-4 Pecuniary Cost 4 Monopoly vs. Oligopoly ….4-5 Benefits to society 5 Conclusion 5 References 6 Introduction As we all know, working within any business industry can be quite chaotic yet rewarding when the right decisions and strategies are implemented. However, some companies make decisions that are made with the best intentions in mind but, some of these decisions have been proven to be illegal. This is a classic scenario that many companies can find themselves in and the government frowns down upon such behavior. This essay will not only shed light on a specific anti-trust case but it will also bring forth an understanding of why certain actions just shouldn’t exist within any business industry. Paramount Pictures Anti-Trust Behavior Paramount Pictures also known as Famous Players-Lasky Corporation is well known for producing many blockbuster hits. Hits like Butch Cassidy and the Sundance Kid (1969), The Exorcist (1973), and Raiders of the Lost Ark (1981) will be forever remembered by many. Although this corporation was deemed to be very successful, it was through block booking where their success was founded. Block booking is a classification of marketing numerous films to a theater as one entity. This action was viewed as being unlawful and banded by the U.S. Congress. Sherman Anti-Trust Act The Sherman Anti-Trust Act was introduced by Congress back in 1890. This act was the very first passed by the U.S. Congress that prohibited trust. This Act clearly states, that companies aren’t allowed to conduct business in a monopolistic manner (Sherman Anti-Trust Act, 1890). The Sherman Anti-Trust Act was

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