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19 download_doc-13.php - G202(3/4/2009) TheRoleofGovernment

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G202 (3/4/2009) The Role of Government Promote Competition:     The U.S. has enacted antitrust policies that make it illegal to attempt  to monopolize a market. Sherman Act (1890):  Makes monopolizing a market, cartels, and other  collusive arrangements illegal. Clayton Act (1914):  Makes price discrimination illegal, and also targets  effect on industry competition.  The Role of Government Promote Competition:     The Department of Justice uses industry sales concentrations as an  indication of the level of competition. The 4-Firm Concentration Ratio (C4): The fraction of industry sales that goes to the four largest  firms in the industry. A C4 closer to one signals an un-competitive industry 
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19 download_doc-13.php - G202(3/4/2009) TheRoleofGovernment

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