Module
Micro: 41
Econ: 77
Public Policy
to Promote Competition
KRUGMAN'S
MICROECONOMICS for AP*
Margaret Ray and David Anderson
What you will learn
in this Module:
• The three major antitrust laws and how
they are used to promote competition.
• How government regulation is used to
prevent inefficiency in the case of natural
monopoly.
• The pros and cons of using marginal cost
pricing and average cost pricing to
regulate prices in natural monopolies.
Promoting Competition and
Efficiency
• Antitrust laws
• Price regulation
Antitrust Laws
• Sherman Act
• Clayton Act
• FTC Act
Price Regulation
• Marginal-cost pricing
• Average-cost pricing