1. Chapter 5: Government Regulation of Competition and Prices

2. Regulation
Regulation by government has occurred primarily to protect one group from the improper conduct of another group.
Until the middle third of this century, regulation of business was primarily directed at protecting competitors from misconduct of other competitors.
Beginning with the middle third of this century, regulation expanded in the interest of protecting consumers.

3. Government Regulation of Business
Chapter 5
Government Regulation of Business
Require
licenses for
certain
businesses
Set health
and purity standards for cosmetics, food and drugs
Prohibit
false
advertising
Regulation
of Production,
Distribution, and
Financing
Create a
national
currency and maintain
Federal Reserve
Bank
Compete
with private
enterprises
Prevent unfair competition and protect business identities (trademarks, etc.)
Regulate
interstate
transportation &
communication
Establish
standards
for weights
& measures 1

4. Acts Related to Regulation
The Sherman Antitrust Act prohibits conspiracies in restraint of trade and the monopolization of trade.
The Clayton Act prohibits mergers or the acquisition of the assets of another corporation when this conduct would tend to lessen competition or give rise to a monopoly.