Examining Monopolies & The Impact of Historical Anti-Trust EDSE 420 – Mr. Peeler
OBJECTIVES • To Explore the role and benefits of competition in capitalists societies • To Define monopolies • To Compare & contrast monopolies & trusts
VOCABULARY UnTarnished irrelevant relentless sanctions Litigation Corporate stifling Precedence Pummeled Innovation incriminating allegations floodgates incentives productivity antitrust monopoly Alleged
Capitalism • Basic production Facilities and capital privately owned • Economic activity is organized and coordinated through buyers and sellers • Owners of land and capital are free to pursue their own self interests in seeking maximum gain
Monopoly • Economic situation in which only a single seller or producer supplies a commodity • Seller controls the price • More freedom to adjust both price and production • Results in a smaller output of goods • Price Discrimination
Trusts • Corporate monopolies organized to eliminate competition in an area of business and control the market for a product • Legal arrangement in which the voting of stockholders assemble under the direction of a board of trustees • Permits trustees to create a single firm out of competing firms
Anti-Trust Violaters Standard Oil AlCOa
What Have I learned? • What are the benefits of competition? • What are the economic benefits of competition as in a capitalist society? • Why do capitalist economies require competition? • Is capitalism a good or bad economic system? Why?
Online Research • Find a company charged with monopolization of their industries • In what year was the company prosecuted? • What was the commodity or service? • What was the verdict? • What is your opinion of the verdict?