Economics Principles and Practices © 2012 Georgia

Chapter 7: Market Structures

Web Activity Lesson Plans


"Department of Justice - Antitrust Enforcement"

Introduction
Today, government has the power to encourage competition and to regulate certain monopolies that exist for the public welfare. In some cases, government has taken over certain economic activities and runs them as government-owned monopolies. The United States Department of Justice Antitrust Division works to promote and protect fair business practices through the enforcement of antitrust laws. In this activity, students will learn more about the Antitrust Division.

Lesson Description
Students will use information from the Department of Justice's Antitrust Division Web site to find out more about the division and some of the cases it is currently pursuing.

Previous Knowledge Expected
Students should be familiar with the following terms:
monopoly: market structure characterized by a single producer; form of imperfect competition
trust: illegal combination of corporations or companies organized to hinder competition

Applied Content Standards (from the Council for Economic Education)
Standard 9: Competition among sellers lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.
Standard 16: There is an economic role for the government to play in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive. Most government policies also redistribute income.

Instructional Objectives

  • Students will list the mission and role of the Antitrust Division.

  • Students will describe the importance of competition in the marketplace.

  • Students will describe the kinds of cases the Justice Department is pursuing.

  • Students will list ways that someone could determine if the antitrust laws are being violated.

Student Web Activity Answers

  • The Antitrust Division works to promote and protect competition in the marketplace through enforcement of the antitrust laws. The Division accomplishes its goals through filing criminal and civil lawsuits that aim to eliminate anti-competitive practices.

  • Answers will vary. Students should express the idea that competition in a free market benefits American consumers through lower prices, better quality, and greater choice. Competition also provides businesses the opportunity to compete unhampered by anti-competitive restraints.

  • Student answers will vary.

  • Answers will vary, but possible responses include: evidence that two sellers of similar goods or services have agreed to price and sell their products in a certain manner; fewer competitors than normal submit bids on projects; bidders win bids on a fixed rotation; the same company repeatedly has been the low bidder who has been awarded contracts for a certain service or in a particular area; etc.

Extending the Lesson
Provide students with sample antitrust cases. Have students determine the actions they would take if they were a member of the Antitrust Division. (Current court cases and documents can be found on the Department of Justice Web site.)
Invite a local antitrust expert to speak with the class about the impact of unfair business practices on the marketplace.

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