Antitrust policy generally precludes the elimination of competition. For this reason, mergers are often with companies in allied but not directly related field.
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Economists have often advocated antitrust policy, public enterprise, or regulation to control the abuse of monopoly power.
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The public policy to combat market power is through the Federal Trade Commission. They can prevent mergers, let mergers go through with the condition of selling some assets in which there is concentrated market power. Also the Department of Justice can litigate and even break up large companies such as it has done with Standard Oil and AT&T.
There are many different factors that affect business policy. These different factors range from shareholders to the dividend policy of a certain business.
The nature and objective of business policy are both formulated as plans and determined by a business organisation.Objective is the end to a plan while policy is the mode and manner to reach the objective. A business policy is: guidelines that facilitate to reach a predetermined objective both in mode and manner formulated from the top to the lower level management while Objectives are the endpoints to a plan.