Antitrust Practices and Market Power

Question: Antitrust Practices and Market Power

Research authoritative articles using the news and the DeVry Online Library (http://library.devry.edu) for a recent case of antitrust investigation. You are free to choose a case from any industry and any part of the world. Based on the case you have selected, answer the following questions.

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  1. Why was/were the firm(s) investigated for antitrust behavior?
  2. Identify some of the costs (pecuniary and nonpecuniary) associated with the antitrust behavior (firms having power in the market). Additionally, note the specific antitrust act (Sherman Act, Clayton Act, etc.) under which the violation was investigated.
  3. Given your research and findings, are monopolies and oligopolies (firms demonstrating power) always bad for society? Be sure to provide real world examples of where this may be the case to strengthen your position.
  4. Provide at least one example of a case where having a monopoly or oligopoly may actually benefit the society.

Based on your findings to the questions listed above, write a report with a minimum of 300 words in essay format in APA style (use the APA template in Doc Sharing), using correct economic terms covered in the discussions. If you ONLY write 300 words, you probably won’t be able to fully answer the questions.

Key concepts to include in your paper include the following.

  • Monopoly Market Structure
  • Oligopoly Market Structure
  • Barriers to Entry Into the Market
  • Natural Monopoly
  • Government Monopoly
  • Downward Sloping Demand Curve
  • Economies of Scale
  • Price Fixing
  • Collusion
  • Monopoly Pricing
  • Price Maker
  • Market Power
  • Economic Profits
  • Imperfect Competition
  • Rent-Seeking Behavior
  • X-Inefficiency
  • Deadweight Loss to Society
  • Marginal Cost
  • Marginal Revenue
  • Antitrust

You must use at minimum at least one article from the DeVry Online Library. Note: Although your textbook is a good source of knowledge, it is NOT an article and cannot be the only source for the assignment. Cite all your references in APA format. You can use the Citations & Bibliography function of Microsoft Word, which is found under the References tab.

Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions or watch this Dropbox Tutorial.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information

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