Antitrust Violation: Oligopolistic Or Negatively

Antitrust Investigation An antitrust violation is a violation of the “laws designed to protect trade and commerce from abusive practice such as price-fixing, restraints, price discrimination and monopolization” (“Antitrust Violations / Wex Legal Dictionary/ Encyclopedia /LII / Legal Information Institute”, (n.d)). In looking at a company that has been investigated for antitrust behavior, identification of any pecuniary or non-pecuniary cost, along with any specific antitrust act violation will be examined. The examination of these findings will provide an insight into whether monopolies and oligopolies impact society negatively. Finally, an example of how a monopolistic or oligopolistic company can benefit society will be revealed.
Antitrust

It can control the quantity supplied, thus allowing substantial control over the price. This price maker is demonstrated in the downward slope of the product demand curve. There are very few, if any pure monopolies, however, there are several near monopolies, but the majority of industries fall under the category of a monopolistic competition. In a monopoly, there are barriers to entry that prevent potential competitors from entry into the market. Some of those barriers are economies of scales in which the monopoly can force the smaller companies out by undercutting their prices and selling at a lower price while still making a profit that the smaller company can’t withstand. Other barriers to entry include patents, licensure, control of resources and pricing. As demonstrated by the French executives, barring entry into the market by price fixing is illegal and punishable with no justification

Oligopolies have considerable control over the price market, however, when changing prices, output, or advertising each must consider the response of its rival. Just as a monopoly has entry barriers, these same barriers apply to the oligopoly as well. One significant difference in an oligopoly versus a monopoly is that the oligopoly is a common practice in the market system, whereas a monopoly is prevented through federal