Competition and the government How the government regulates competition

The government What is competition? The ability to own a business even if someone else already has that business. Sometimes people own all of the resources needed to make a certain product. Because of this, he is the only person who can make something. This is called a monopoly. When monopolies exist, prices are outrageous, quality is down and people are misused (usually). These take place in the private sector, but the government can step in if they feel consumer rights are being mishandled. What is competition? Why does the government have to get involved?

Government action How does the government deal with monopolies? What does the government regulate? Anti-trust laws (The FTC) Engaging in global trade Supporting business start- ups. Anything that has to do with commerce ( implied power of the constitution).

Government regulation United States Department of Agriculture can control who sells food products. If something is unhealthy, it can be taken off the market. Food and Drug Administration also protects consumers from unhealthy products. Federal Communications Commission controls the way people communicate through TV and radio. Environmental Protection Agency protects the environment and keeps businesses from harming the environment. USDA FDA FCC EPA

Government regulation The Federal Trade Commission protects consumers and other businesses from monopolies. The FTC regulates companies to keep them from forming monopolies and from misleading consumers FTC