Randall Enterprises sells top-end circuit boards to tech companies to incorporat
ID: 339919 • Letter: R
Question
Randall Enterprises sells top-end circuit boards to tech companies to incorporate into their servers. Randall Enterprises has control of 60% of its industry’s market. Competitor Company files a claim with the Federal Trade Commission (FTC), arguing that Randall Enterprises is a monopoly in violation of antitrust laws.
What factors will the FTC consider when determining whether Randall Enterprises is a monopoly? (4 points)
What arguments should Randall Enterprises make in its defense? (4 points)
If the FTC determines that Randall Enterprises is a monopoly, what actions can it take against Randall Enterprises? (4 points)
What business considerations may motivate Competitor Company to file a claim against Randall Enterprises? (4 points)
Explanation / Answer
What factors will the FTC consider when determining whether Randall Enterprises is a monopoly? (4 points)
The antitrust laws prohibit conduct by a single firm that unreasonably restrains competition by creating or maintaining monopoly power. Most Section 2 claims involve the conduct of a firm with a leading market position, although Section 2 of the Sherman Act also bans attempts to monopolize and conspiracies to monopolize. As a first step, courts ask if the firm has "monopoly power" in any market. This requires in-depth study of the products sold by the leading firm, and any alternative products consumers may turn to if the firm attempted to raise prices. Then courts ask if that leading position was gained or maintained through improper conduct—that is, something other than merely having a better product, superior management or historic accident. Here courts evaluate the anticompetitive effects of the conduct and its procompetitive justifications.
What arguments should Randall Enterprises make in its defense? (4 points)
Free and open markets are the foundation of a vibrant economy. Aggressive competition among sellers in an open marketplace gives consumers — both individuals and businesses — the benefits of lower prices, higher quality products and services, more choices, and greater innovation. The FTC's competition mission is to enforce the rules of the competitive marketplace — the antitrust laws. These laws promote vigorous competition and protect consumers from anticompetitive mergers and business practices. The FTC's Bureau of Competition, working in tandem with the Bureau of Economics, enforces the antitrust laws for the benefit of consumers.
The Bureau of Competition has developed a variety of resources to help explain its work. For an overview of the types of matters investigated by the Bureau, read Competition Counts. This Guide to the Antitrust Laws contains a more in-depth discussion of competition issues for those with specific questions about the antitrust laws. From the menu on the left, you will find Fact Sheets on a variety of competition topics
If the FTC determines that Randall Enterprises is a monopoly, what actions can it take against Randall Enterprises? (4 points)
The US must continue to invest in its "natural strategic partner" India, nominee for assistant secretary of defence for Asian and Pacific Security Affairs Randall Schriver said today, noting that the security ties between the two nations was at "its strongest point in history".
Addressing the US lawmakers during his confirmation hearing before the Senate Armed Services Committee, Schriver said the overall relationship between the two nations had strengthened significantly during the l ..
What business considerations may motivate Competitor Company to file a claim against Randall Enterprises? (4 points)
In the "people-oriented" modern enterprise, the person is the most important factors in the enterprise. How can enterprises attract and retain talent? Effective employee motivation measures, can maximum arouse the work enthusiasm of the employees, and improve overall efficiency. To play the good effect of motivation, managers must have a strong motivation consciousness, know how to use motivations to stimulate the potential of employees (Wei Lv, Wei Tang, 2012). Companies are well aware of the importance of employee motivation in the modern enterprise management, there are a lot of relevant research results about employee motivation. But the effect is not obvious, many enterprises only attach importance to material motivations and spiritual motivations, and the motivation ways are single. So the comprehensive system of motivation theory and method is very important for modern enterprises. Motivation is a term of psychology, it is a process stimulate the person's psychology. Motivation in enterprise management, the word refers to stimulate staff's work motivation, mobilizing the enthusiasm and creativity of employees, to complete job tasks effectively (Yuwen, 2010). Jia In the process of modern enterprise management, staff motivation is through effective motivations, to meet the various needs of employees, motivate the desire, need, motive of employees, encourage employees to set a specific goal in the process of pursuing goals to maintain a positive mood and state, fully tap the potential of employees, realize the development of human resources extent to the greatest.
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