civics chapter 7

what are natural monopolies and government monopolies?

-A natural monopoly is a distinct type of monopoly that may arise when there are extremely high fixed costs of distribution, such as exist when large-scale infrastructure is required to ensure supply. -a government monopoly (or public monopoly) is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. It is a monopoly created by the government.

monopoly

A market in which there are many buyers but only one seller.

perfect competition

A market structure in which a large number of firms all produce the same product

trust

A monopoly that controls goods and services, often in combinations that reduce competition.

Is deregulation business a good idea in the U.S?

Deregulation is god because is gives business owners a chance to succeed in the economy. It also prevents communism.

merger

the creation of a new company by joining two separate companies

franchise

A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

deregulation

A policy promoting cutbacks in the amount of Federal regulation in specific areas of economic activity.

what was the purpose of the Sherman antitrust act, and the subsequent Clayton Antitrust act?

-Passed in 1890, the Sherman Antitrust Act was the first major legislation passed to address oppressive business practices associated with cartels and oppressive monopolies. The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade. The Clayton Antitrust Act is an amendment passed by the U.S. Congress in 1914 that provides further clarification and substance to the Sherman Antitrust Act of 1890. The Clayton Antitrust Act attempts to prohibit certain actions that lead to anti-competitiveness.