BUS 340 Lecture Notes - Lecture 26: Effective Competition, Industrial Revolution, Sherman Antitrust Act
Document Summary
Rockefellers) major purchasing power became a monopoly: trust is not business entity. Generation skipping: skip one generation of state tax. Used to save money for people: wealthy people used trust to save money, competitive system increase (because with monopolies there is no competition, battle of prices decreasing, more efficiency/productive use of resources, innovation in new products (improving) Better, faster, cheaper : purposes of antitrust laws, encourage a large number of competitors, equitable distributions of income. When a company goes public, they file a report every quarter so everybody knows everything usually business" want to stay private to keep profit margin up. Increase in competition so that income gets spread out: prevent a monopoly, provide workable competition: recognize that in order for it to be workable, there"s only room for a few because of fixed expenses. Oligopoly: few competitors in a market: ex: large commercial jet liners only room for 2 (bowing and.
