Federal Antitrust Policy during the Kennedy-Johnson Years

By James R. Williamson | Go to book overview

Glossary
ADMINISTERED PRICE. Prices agreed upon by the dominant firms in an industry rather than having been arrived at by the free market forces of demand and supply.
ANTITRUST. Government opposition to business firms, or combinations thereof, that are engaging in activities that may reduce competition. Such activities may be mergers, price fixing, patent abuses, production quotas, etc. (Although the "trust" form of business operation became obsolete by the late 1890s, the term antitrust has remained to the present.)
ANTITRUST ENFORCEMENT AGENCIES. In the United States, the two antitrust agencies of the federal government are the Antitrust Division of the Department of Justice and the Federal Trade Commission (FTC).
BARRIER TO ENTRY. Any obstacle that may prevent or make it very difficult for a potential producer to enter an industry. Control over natural resources, excessive start-up costs, size of plant required for cost-effective operation, and market power of leading firms are examples of entry barriers.
CIVIL INVESTIGATIVE DEMAND. An Antitrust Division request for information, enforced by a court order.
COLLUSION. The act of firms cooperating to establish the price and/or production level for a particular product or service.
CONCENTRATION. Economic strength acquired legally and/or illegally, which gives a firm or firms great power in their industry and in the economy. Political power usually accompanies such economic strength.
Aggregate Concentration. The total assets held by the 200 largest corporations in the United States. (The FTC uses the number 200 for its various statistical purposes.)

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