Date:April 22, 2013

Regulating Monopoly

Most businesses compete fair and square. They’re tough competitors, but they don’t try to cheat the system—or the consumer. Once in a while, though, business might decide to try to beat the system in ways that break the law: for example, they might try unfairly to keep other competitors out of the market, or work together with a competitor to make more money or corner the market. Illegal practices harm consumers: prices go up and there are fewer choices. The FTC keeps its ear to the ground and investigates when it suspects one of these practices, taking action in court to stop.

What would happen if we did not have the Federal Trade Commission? Without the FTC, businesses may break the law and create monopolies, price fix products, restrict supplies, or unfairly divide customer-allocation. The FTC enforces antitrust laws to promote competitive markets and protect consumers.

  • At the end of the lesson you will be able to…
  • Define monopoly.
  • Explain how the Federal Trade Commission regulates monopolies and promotes competition.
  • Write an editorial to explain whether or not monopolies should be prohibited in free market economic systems