Doncouse_Jeremy_Week7-2 - Problems are that the regulation...

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Jeremy Doncouse ECON202 Chapter 30 Key Questions 11/15/2008 2) Sherman Act foreign nations is declared to be illegal. trade or commerce among the several states, or with foreign nations, shall be deemed guilty of a felony. Clayton Act The FTC has power to investigate and try unfair practices. Firms are permitted to file antitrust suits on their own with the FTC. 5) a) Not allow b) Not allow c) Might be challenged d) Generally permitted e) Generally permitted 10) Energy, communications, and public utilities. Industrial regulation creates no incentive for being efficient, causes the firms to charge higher prices to consumers, and perpetuates monopoly long after the conditions of natural monopoly have ended. 12) Social regulation applies to more firms, intrudes in the day-to-day production process more, and has expanded when industrial regulation has waned.
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Unformatted text preview: Problems are that the regulation may be too much, laws are poorly written, decisions are often made without enough information, has costly side effects, and may attract overzealous workers who are hostile towards the market system. Section 1: Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with Section 2: Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the Section 2 outlaws price discrimination. Section 3 prohibits tying contracts. Section 7 prohibits the acquisition of stocks of competing corporations when the outcome would be less competition. Section 8 prohibits the formation of interlocking directorates....
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