Top Posters
Since Sunday
New Topic  
Posts: 23
Rep: 0 0
5 months ago
What is antitrust policy? How do these laws represent social and economic policy?
Source  Download
Business and Its Environment
Edition: 7th
Read 15 times
1 Reply
Answer verified by a subject expert
Posts: 191
Rep: 7 0
5 months ago
Sign in or Sign up in seconds to unlock everything.
Antitrust policy is an amalgam of social policy, economics, law, and administrative practice. Antitrust acts were a result of the political pressure from farmers and others concerned about railroad cartels, the railroads' pricing practices, and the distribution of power between farmers and railroads. The laws thus represent both social and economic policy.
As social policy, the antitrust laws express concern about concentrations of economic power and the potential for abuse inherent in that concentration. This parallels the concern about the concentration of political power and the preference for its dispersion in the electorate and among the institutions of government. Just as the Constitution controls political power through checks and balances among the branches of government and through popular elections, antitrust policy focuses on controlling economic power.
Antitrust policy also reflects economic policy. The basic objective is to protect competition and by doing so to benefit consumers. Antitrust thus is concerned with the structure of markets, the conduct of market participants, and the resulting performance of those markets. Protecting competition does not mean protecting competitors; vigorous competition can result in firms being driven from the market. Moreover, practices that may appear to be anticompetitive must be evaluated in terms of their effects on consumers. Antitrust economics has both a theoretical and an empirical component.
This verified answer contains over 210 words.
Related Topics
New Topic      
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  163 People Browsing
Your Opinion
Do you believe in global warming?
Votes: 182

Previous poll results: What's your favorite coffee beverage?
Related Images

▶️ Video: Aneurysm

For a complete list of videos, visit our video library