Ch+7.4

Ch 7.4 notes and questions __market power__ __government and competitoin__ __Deregulation__ Questions #1-4
 * predatory pricing is to control prices and output like a monopoly the leading firms in the market can form a cartel merge with one another, or set the market price below their costs for short term to drive competitors out of business
 * antitrust laws are laws that encourage competition in the market place
 * trust like a cartel an illegal grouping of competition
 * mergers occurs when a company joins with another company or companies to form a single firm
 * deregulation means that the government no longer decides what role each company can ply in the market
 * 1) the purpose of antitrust laws is to encourage competition in the market place
 * 2) the government approves a merger when they try to predict the price ad service
 * 3) predatory pricing hurts the competition because it can set the market price below their costs for short term to drive competitors out of business
 * 4) deregulation change the industries because firms in these industries to compete more in markets by eliminating many entry barriers and price controls