1. Describe your company in its monopolistic state I work for Microsoft. In its
ID: 373698 • Letter: 1
Question
1. Describe your company in its monopolistic state
I work for Microsoft.
In its monopolistic state, we can set high prices to extract profits. We will not allow technicians and employees to form or associate with any unions. No form of collective bargaining will be allowed. We will try to acquire small companies to avoid those becoming competitors. If necessary we will reduce prices- to wash out competitors. We can form exclusive contracts with suppliers and consumers to make sure that we are their only clients
2. Describe what the Sherman Act will do to stop you, be specific (2 points)
The Sherman stops any form of trust /cartel formation that restraints international trade or interstate commerce. Both cash penalty and jail are possible under the act for involving in activities to dominate the market and become a monopoly. Injured persons can sue the companies for damages
The Sherman act will stop me
3. Describe what the Clayton Act will do to stop you, be specific (2 points)
Clayton act is a successor of Sherman act, dealing with wide range of monopolistic activities offering comprehensive guidelines on competitive practices
The act will stop our company
Explanation / Answer
In a capitalist economy "you are the winner" when your company is seen as a monopoly. This was true for Standard Oil, ATT, Microsoft. Take the company you work for (or own) and describe the scenario where you become a monopoly. Now big brother is coming in to stop you...
Grading
1. Describe your company in it's monopolistic state (1 point)
2. Describe what the Sherman Act will do to stop you, be specific (2 points)
3. Describe what the Clayton Act will do to stop you, be specific (2 points)
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