Economics is a fundamental icon that has its significance in almost every market and every field in particular. The main definition of economics has been proposed by Adam smith that shows economics is the name of attaining maximum satisfaction through scarce resources which is equally important for both organizations as well as individuals. Economics are predominantly divided into two different branches such as microeconomics and macroeconomics . There are certain concepts that specifically stride under the field of economics and among them; the name of market based structure is one of them. The relationship among the regulations along with certain market structure is effective and powerful. The assignment is divided into different parts that need to be pursued in order to formulate the appropriate structure of the entire paper accordingly.
- Antitrust Law is the law that specifically comes under the sphere of economics based regulations and laws. Antitrust Law which also referred as the Competition based laws are basically statutes that developed specifically by the Government of the United States (US) in order to protect the consumers from the predatory business based practices just to ensure that fair based competition exists in the market in an open market economy. There are four different laws which specifically come under the ambit of Antitrust Laws that deem important for the market structure and regulation based analysis in particular. All of these four applications of the legislation should be taken into account for the analysis and the names of the same are Market Allocation, which is all about to allocate the major resources of the company or a country in such a manner so that the probability of yield would be on a higher position (Abhijit Banerjee, 2011). Apart from this, market competition, bid rigging and price fixing are certain attributes that are important for the sake of the companies in particular and all of these elements are essential for the companies and markets to have a perfect pricing structure for the products and services from which they can influence the market with effectiveness.
- There are different purposes associated specifically with different types of market structure. In order to bring all sorts of effectiveness, organizations have to consider all of these applications and effects in order to comply with the regulations and it is required to examine the purpose of industrial regulations by applying the concept to the markets of Oligopoly and Monopoly. An Oligopoly is basically a market form in which the entire market is totally based on the few sellers that are dominating the market by mutual consensus(Abhijit Banerjee, 2011). The common objective of oligopoly system is to minimize the market competition and increasing the prices for the consumers. The main purpose of industrial regulation in terms of regulating the Oligopolistic market structure is to reduce the high price dilemma in the market as it is more than important to have consistency in the market, regardless with the fact that how much sellers are there in the market. The laws of Antitrust Law could be used in this particular provision as well to rejoice the economic prosperity and become energetic (Abhijit Banerjee, 2011). On the other hand of Oligopoly, there is a name of Monopoly, as well. A monopoly exists in a market wherein a single seller is there in the market which leads to lower down the competition and increasing the price of the products fiercely. In order to become effective and competitive, the legislative authorities should play their role in terms of managing the competition as well as the prices of the products.
- Any economy that is willing to go beyond the success are obliged to strictly adhered with the rules and regulations that have been structured by the law making authorities. There are three regulating bodies and authorities that include Security and Exchange Commission (SEC), Board of Revenue (BOR) and Central Banks. The main function of SEC is to regulate the companies and entities to sustain in the industry by means of specific regulations in particular, while the main function of Central banks is to regulate and make standards for the commercial banks located and operating in a region. On the other hand, BOR is held responsible for taking and managing taxation practices at every level.
- Social Regulations are usually associated with the trade and quality of goods and services of a country. The purpose of such regulators is to ensure that the trade is up to the mark and the quality of the services and goods found in the company are perfect and organized, and it is an effective regulating body.
- There are number of social regulators like World Trade Organization (WTO), European Union (EU), US-AID, and Organization for Economic Development (OECD), OPEC, and World Health Organization (WHO). The main functions of all of these five social regulators are to manage the trade imbalance in countries along with managing the health provisions in different region.
Abhijit Banerjee, . V. (2011). Poor Economics: A Radical Rethinking of the Way to Fight. New York: Pearson Group.