There are many different forms of market structures in economics

There are many different forms of market structures in economics

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There are many different forms of market structures in economics. They range from perfect competition all the way to Monopoly. With that being said – there is one company that most people think about when it comes to Monopoly – and that is AT&T. This is because they have been guilty if it not once – but twice in their history. This paper will discuss both instances. A monopoly is described as “a market structure characterized by a single firm producing a product with no close substitutions” (Farnham p192). Well, for the longest time – that is exactly what AT&T was. They offered local and long distance communications when no one else was. The funny thing about this – is that the government knew about this and accepted this principal back in 1913. In essence – AT&T became a controlled monopoly by the Government, and all was well until the mid 1970’s – when antitrust laws were re-designed. This agreement was known as the Kingsbury Commitment and it stated that AT&T would “connect non-competing independent telephone companies to its network and divest its controlling interest in Western Union telegraph” (The Bell System, para.2 ). Now, during the time of the monopoly, AT&T was actually looked at multiple times and a few anti-trust suits were
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This note was uploaded on 02/27/2011 for the course ECON 550 taught by Professor Tracy during the Winter '10 term at Strayer.

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There are many different forms of market structures in economics

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