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Trusts, Monopolies, and Antitrust
In a capitalist market, business monopolies can sometimes develop, and require the intervention of certain legislation. A monopoly is the control of a service or supply of a commodity. Monopolies can also lead to, and promote the power to fix prices and exclude competition. Trusts are also very similar to a monopoly. The main difference between the two is that with a trust, there is a group of trustees, which come together to consolidate one corporation that can eventually lead to the configuration of a monopoly. In the United States the government has enacted antitrust laws to discourage the formation of such monopolies and trusts. The initial antitrust legislation that was enacted in the United States was the Sherman Act of 1890. This law was initially introduced as a result of the attempted consolidation of the Standard Oil Industry by Standard Oil and John D. Rockefeller (Coleridge, 1).
Originally states tried to outlaw anticompetitive behavior. The idea was that corporations chartered in one state would not normally hold stock in a corporation in another state. However, this was ineffective, as corporations merely incorporated and expanded into other states. In addition, Samuel Dodd came up with the idea of a trust
Approximate Word count = 1271
Approximate Pages = 5 (250 words per page double spaced)
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