Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Capitalism and Competition
It is ironic that the FTC video points to the shopping mall as evidence that its anti-trust laws are working, because the mall is going the way of the dinosaur—i.e., many malls are empty, as Amazon has basically killed the bricks and mortar retailers. With Amazon, the e-commerce giant, seeming to take over everything (or at least retail), it does seem at times like there is not much competition in some respects. What I find to be problematic is that Amazon can actually lose money on its retail end (it makes its money mainly through Amazon Web Services—i.e., by providing Internet to companies). With every transaction, Amazon is losing money—but because it is undercutting its competitors, its competitors are going out of business and Amazon gets their market share. As Amazon spreads into other sectors it does seem like it is becoming a trust—but it is still undercutting competitors, which means it is not dictating price in a way that makes shoppers angry—at least not yet.
I think there should be more competition in some sectors where there are obviously trusts—such as in health care, insurance, utilities, things like this. However, I also think that in other areas there is a lot of competition—such as in clothing, manufacturing, automobiles, and so on.
Does capitalist competition natural lead to concentration? I think it naturally leads...
By dominating and controlling the market and undercutting competitors to force them out, one company can have final say in pricing and organization and what is made available.
The competition bureau at the FTC probably is necessary to keep monopolies in check, as otherwise nothing will—the market would allow monopolies to develop because when there is enough power and wealth concentrated in one set of hands, a monopoly is going to be the natural outcome unless there is an opposing force in the market to prevent that from happening. Capitalism leads to domination because of the characteristics and qualities of human nature: the capitalist system simply allows for that aspect of human nature—the desire to control everything, to grow ever larger, and to dominate and crush the competition—to be possible.
I do not think, however, that the FTC does a very good job about breaking up monopolies. There are plenty of monopolies that exist that it does not even touch, and I think that part of this reason is that the FTC has its palms greased by the monopolies it ignores and goes after the ones that are not lobbying enough. This is my theory and suspect there is some truth to it, otherwise why are…
Monopoly Radical Treatise on Monopoly When a firm is the only seller or supplier of a good or a service for which there is no close substitute, it is referred to as a monopoly. Broadly speaking, every firm would naturally like to have a monopoly given that monopolies do not face competition. However, monopolists can only succeed in a market situation where the barriers to entry are very high (Brue & McConnell,
Doubleclick FTC's investigation of merger Google's acquisition of DoubleClick: Is it monopolistic? The Internet search company Google dominates the search marketplace to the point that to 'Google' something is synonymous with searching for information. However, maintaining its search engine is only one component of Google's business: to fund its activities, it must sell ads. As well as maintaining Google AdSense, Google recently acquired DoubleClick, which offers another venue for Google to amass advertising revenue.
Since the monopoly controls so much of the market share, the producers of goods have no choice other than to sell to the firm at lower prices, meeting their demand. This causes the market to stagnate, in that the producers of the goods must increase their production, but lower their margins (Federal Trade Commission, 2002). The same occurs for merged companies. Regardless of the type of merger, the end result
Illegal Restraints of Trade: Legal Monopolies in the United StatesSeveral federal laws prohibit the formation and operation of monopolies in the United States at present. The laws against monopolies are intended to prevent these types of business entities from dominating a given market by eliminating all competition, typically to the detriment of consumers. Moreover, monopolies are also characterized by lower-quality products and services and they tend to discourage innovation in
Industrial/Economic Regulations According to the Organization for Economic Cooperation and Development (OECD) defines economic regulations (industrial regulations) as "intervening directly in market decisions such as pricing, competition, market entry, or exit ("Economic regulations," 2002). The main reason for economic regulation is because it is permits the straightforward businessman to succeed in the economy and decrease business relations within the economy from being broken by the illegal activity that takes place (Black,
Marketing Communication Process Google Inc. Google Inc. is an U.S. based multinational public corporation that operates primarily in the internet search function, cloud computing, as well as a range of different advertising solutions. The company is large and extremely multifaceted. Google develops a large number of services and products that are part of a larger suite of Google products. These products are offered for free to the end users and Google primarily