Economics Set 5
Clayton Act
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.
Sherman Anti-Trust Act
First Anti-monopoly U.S. law which attempted to increase economic competitiveness. The Sherman Antitrust Act of 1890 made it illegal for companies to seek a monopoly on a product or service, or form cartels.
Mergers
a combination of two or more companies to form a single business
Natural Monopoly
a market situation in which the costs of production are minimized by having a single firm produce the product
Public Goods
economic goods that are consumed collectively such as highways and national defense
Private Goods
goods that, when consumed by one individual, cannot be consumed by another
Antitrust laws
legislation to prevent new monopolies from forming an police those that already exist
Externality
the unintended side effect of an action that affects someone not involved in the action
Monopoly
when the market create a sole provider for a good or service