Economy 204

Some of the main reasons that government tries to prevent monopolies from forming seems to be that by operating as a monopoly the business has ultimate magnate of the market for their product. As a result of this power and volume stake the government has documented case of price contrast and unfair trade practice. The Sherman Act, along with the Clayton Act helped the Federal passel Commission pass laws that made tying contracts illegal, it limited mergers that would hit monopolies and lastly it banned price discrimination. By enforcing these acts and laws the Federal authorities has been able to keep a firm hold on monopolies, by preventing them in some instances before they ever occur. In other cases these acts lose helped to breakup previously formed monopolies that held comprise of the market shares.

By operating as a monopoly drudgery is creating a market that cannot be interfered with by potential competitors. By holding the majority stake, any other competitor ordain need to meet and match price point and fiber of Wonks potato chips.



From a consumer standpoint, I like to have a variety of options of products and ultimately like to be the one qualification the final decision on what I want to purchase. I do not want to be influenced by a firm that controls all products and all pricing that I mustiness be charged. It is clear to me why different government agencies have also put a negative stamp on monopolies that are trying to form and encouraged the break-up of already animate monopolies. From the information provided we can see that by Wonks operating as a monopoly its advances the firm only and is not operating for the benefit of the consumer.If you want to get a full essay, order it on our website: Orderessay



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