Natural Monopolies

1. Natural monopolies is quiet popular organization form that’s widely used in many countries. In most countries natural monopolies are basically the same, they are concentrated within same sectors of economy: railroad, underground, telecommunications, post etc. The main problem in that case is to find a pure natural monopoly, today natural monopolies are partly owned by private companies and persons.

2.In the USA natural monopolies operate in different areas of economy and that makes them different from Russian or British. At the same the USA were the first to elaborate antitrust code and in 1890 Antirist act was signed into law. This act vested government officials with an authority to investigate, seek and judge cases where the provisions of the act can be violated. The initial goal was to advocate the right of people to consume products at reasonable prices through market competition.

3.According to the act “every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor…”. However we can cite examples of the enterprises that immune from antitrust code. Usually government itself regulates these monopolies and set reasonable prices for the services that the company charges.

4.Sometimes natural monopoly can concentrate the whole industry. It’s essential when the product or service is limited to a degree when it’s impossible to get profit without large monopolistic structure.

Iх. Прочтите абзац № 2 и ответьте письменно на следующий вопрос:

What is the initial goal of the antitrust act?