WEBVTT

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Antitrust laws regulate
competition between companies.

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They protect consumers
from price gouging

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and unfair competition by
making sure trade remains

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unrestrained.

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When businesses conspire to
tilt competition in their favor,

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they violated antitrust laws.

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A monopoly exists
when one company

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is the sole provider of a good
or service in an industry.

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This makes it nearly impossible
for others to enter the market,

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and consumers have fewer
choices and higher prices.

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Antitrust laws can penalize that
company or even break it up.

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Antitrust laws are also applied
to other suspect business

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activities, including market
allocation, bid rigging,

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and price fixing.

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Suppose ABC and XYZ corporations
are the only widget producers

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in the state.

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They split the market in
half and sell their products

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at high prices while staying
out of each other's territory.

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Other businesses cannot
enter the competition.

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This is market allocation.

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Bid rigging occurs when ABC,
XYZ, and PDQ corporations

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agree to act together
as a single producer

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to influence prices.

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They take turns
bidding low on projects

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to make sure they
control all business

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and keep competitors out.

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Price fixing occurs if ABC
and XYZ are the only widget

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producers, and they conspire
to sell their products

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at the same high price.

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If their widgets are
of equal quality,

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consumers have no
choice and higher costs.

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