Antitrust 1 Prof. E. Fox Fall 2004 1 I. Introduction to Antitrust Law 4 a. General Background 4


Antitrust Economics Different Theories of Antitrust Economics



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Antitrust Economics

  1. Different Theories of Antitrust Economics


  • Classical economists – price of every product is determined by the amount of labor needed for its production and no government intervention is needed since competition will control prices

  • Neo-classicistproducers will maximize profit, consumers will be concerned w/maximization of utility; law of demand applies = as the price of a product increases demand will diminish

  • Industrial Organization Economics – structure of an industry influences the conduct of the firms

  • Marginal Revenue – increase of total revenue yielded by the sale of an additional unit of the product

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