EGT-1 Task 3 Revised
A. Summarize the four major pieces of legislation collectively known as the Antitrust laws.
United States antitrust law is a collection of federal and state government laws, which regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers. The four major pieces of legislation known as the Antitrust Laws include: The Sherman Act, The Clayton Antitrust Act, The Federal Trade Commission, and the Celler-Kefauver Act.
The Sherman Act was created in 1890 had two major provisions which was to prohibit conspiracies to restrain trade and also to outlaw monopolization. In 1914 the Clayton Act was ...view middle of the document...
A pure monopoly is a market structure in which only one firm is the sole seller. The purpose of industrial regulation in regards to monopolies is clearly to protect the public from price gauging and companies controlling demand. Since monopolies have no competition they have complete control over pricing and production. (McConnell 195)
C. Explain the major functions of the three primary federal and state regulatory commissions that govern industrial regulation.
The Federal Energy Regulatory Commission or FERC (1930) is an independent agency that regulates the interstate transmission of natural gas, electricity, oil pipelines, and water-powered sites. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines as well as licensing hydro power projects.(2)
The Federal Communication Commission or FCC (1934) regulates interstate and international communications by telephones, televisions, cable televisions, radios, telegraph, CB radios, and satellite in over 50 states. The FCC is directed by five commissioners who are appointed by the President of the United States and confirmed by the U.S Senate.(3)
The State Public Utility Commissions is represented by NARUC which is responsible for utility services (electricity, gas telephones) in different states.(4)
The reasoning behind the three is to control pricing so the public can benefit from the economies of scale that occur with monopolies and do so in a way that provides a fair return for those producers. Specifically,...