It was these democratic principles that have gotten us to the place we are today. We must not look to the judicial branch to affect the regulation of business; instead we must take on this issue in the tried and proven democratic process. The role of the Supreme Court is to determine the constitutionality of laws and regulations, not create them, and that is exactly what the reinterpretation of the commerce clause has done. The reinterpretation has extended the power of the federal government, and the judicial system too far, allowing them to overstep their boundaries. The continued power grab will destroy the capitalist system shackling the limbs of the free market.
Voodoo Anyone? Christopher Warden breaks down economics into a fool proof explanation, and uses terms references which a dummy could understand. As I read this informative book I gathered an understanding for the way in which our economy works, as well as the unseen ways in which our government handles the issues that affect our everyday life. In the first chapter, the author discusses what prices are the difference between the price of things, and the cost of things. He breaks down what the stores charge us in order to sell the product at a price we will pay, so the store can still make a profit on the item.
All companies cannot dictate the price of the products. Imperfect Competition also known as Monopolistic/Competitive market is the complete opposite of Perfect Competition. Imperfect Competition means that all companies have the power to dictate prices of product and all companies are able to join the same business if the revenue is up. Oligopoly is when a small group of companies control a specific market. Monopoly is where only one company is providing a good and or service.
Running head: REGULATIONS AND MARKET STRUCTURES Relationship between Regulation and Market Structures Rajenna Combess Western Governors University EGT1: Economics & Glob Bus Apps Task 3 03/19/2012 A. Define industrial (i.e., economic) regulation Industrial regulation is the government regulation of an entire industry with the objective of keeping close eye on the industry prices and products to ensure that it does not create a monopoly and take advantage of consumers. Economic regulation is a form of government regulation designed to influence the behavior of industries and individuals in the private sector (McConnell & Brue, 2008). Why industrial regulation exists Industrial regulation exists to ensure that natural
For a monopoly to be considered to breach antitrust laws found within the Sherman Act a set of criteria need to be met. First, the individual must be in control of a monopoly and not a perceived monopoly.The next stepping stone to breaking the antitrust laws found within Section 2 of the Sherman Act directly concerns intent. ( Antitrust,488) If it is Ashwin Selvarajan the intent of an individual to gain monopolistic control and then unleash the forces of their monopolistic control on the market, erasing many levels of competition within their business sector, then this would be considered a breach of the Sherman Act. Saul can argue Murray, by trying to break the past business practice and also by acquiring other competition is showing intent to gain monopolistic attitude. There are a few theories which support Murray Firstly, A monopoly can develop from the sale of a superior product with respect to the company’s competitors.
Business owners can choose from one of several business options that the Internal Revenue Service’s offer in regards to tax (nbea.org, 2007). Antitrust law is to encourage corporate competition by restricting anti-competitive behavior. An example is a monopolization and, agreeing with a competitor on product price fixing. The antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor. The government can stop businesses from merging or force businesses to divide into different companies to encourage competition (nbea.org,
Differentiating Between Market Structures ECO/365 There are four main market structures that the majority of companies and firms are labeled under. They are; perfect competition, monopoly, monopolistic competition, and oligopoly. A perfect competition is where the price of a product or service is made by the demand of which that is being supplied. A monopoly is where a firm gains all sales due to its supply power and it prevents other firms from entering the same market. A monopolistic competition is where several firms compete in the same market offering similar products or services but the products differ which makes it not a perfect competition.
But was Microsoft intensions unethical and controlling? Or were they attempting to create a monopolistic competition for the industry? The definition of a monopoly is “a market structure in which there is only a single seller of a good, service, or resource. In antitrust law, a dominant firm that accounts for a very high percentage of total sales within a particular market” [ (McConnell, 2012) ]. And the main characteristics of pure monopoly are: being a single seller, not have a close product substitute, setting the price, block entry for competitors, and non-price competition [ (McConnell, 2012) ].
4. The role of the government is limited. - To see the rules of the game - Enforce property rights - Provide public goods Next we have Adam Smith and his invisible hand. It states the everyone should be free to sell and buy whatever they like the government shouldn’t block out or interfere with the market. Also states the companies would keep the
Ethical egoism is the prescriptive doctrine that all persons ought to act from their own self-interest (Philosophy.lander.edu, 2001). Based on agency theory, it is the management’s responsibility of Union Carbide by acting as an agent to act in the best interest of the shareholders. As an egoist point of view, it is therefore ethical for the corporation to cut cost in order to maximise the shareholders’ wealth. Utilitarianism is a philosophy that bases the moral worth of an action upon the number of people it gives happiness or pleasure to. In utilitarianism, an action is considered to have utility only to the extent that it contributes to the overall good (Investopedia, n.d.).