Major moves in this area have been against

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Major moves in this area have been against advertising that the FTC has deemed false and deceptive. The Cellar-Kefauver Antimerger Act (1950) The act was designed to close the merger loopholes that remained in the Clayton Act. The act banned anticompetitive merger that occurred as a result of one company acquiring the physical assets of another company. The Hart-Scott-Rodino Antitrust Procedural Improvement Act (1980) This act required that pending merger by reported in advance to the Federal Trade Commission and the Justice Department. Unsettled Points in Antitrust Policy 1) Definition of the market: should a market be defined broadly or narrowly? The way it is defined will help determine whether a particular firm is considered a monopoly or not. 2) Concentration ratios: these don’t address the issue of foreign competition. In 1982, the Justice Department adopted the Herfindahl Index , which measure the degree of concentration in an industry = (S)2 + (S)2 +…(Sn)2 a) The Justice Department considers any number less than 1,000 of the herfindahl index to be representative of an unconcentrated industry. Regulation— Ways of regulating the natural monopoly: a) price regulation: MC pricing is one form of price regulation b) Profit regulation c) Output Regulation
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