00:01
Okay, so let's understand the meaning of monopoly.
00:06
Okay, so it is the situation of an economy in which single firm holds the market share in largest proportion, okay? so we can take example of windows that is developed by microsoft.
01:09
Okay, the windows or we can say the microsoft has the largest share in the market in terms of ms office, windows, okay? so microsoft has largest market share for these two products.
01:38
So that is the main example of monopoly because if there will be a single firm that is providing the specific services then the firm will be a price setter of course there will be a price discrimination so that is why they will be monopoly in the economy however government has enacted a particular act which we know as sherman and returns act to tackle with the situation of monopoly okay it it has major provisions for prohibition of monopoly for you know restricting or we can say prohibition on price discrimination it restricts and conspiracies that hold that hold back the trade okay so there are lot of major provisions which are which have been designated under this act however let's say they will be certain reactions sections by this act upon for a series of events.
03:02
Let's suppose there is a merger of two major players in the automobile industry.
03:13
Let's say there is a firm a and firm b.
03:17
So both are in automobile industry and both are the major players.
03:21
So they will be violation of section.
03:29
Section 7 of sherman and clayton's act because it prohibits the proposed activity.
03:39
So section 7 of such act will be violated.
03:44
Followed by that, let's just suppose that in that in that act, okay, the sherman and clayton's act that there is a price discrimination, okay, not price discrimination, it is.
04:08
Is a price rigging concept.
04:11
So that most of the, you know, when there is a bidding concept, what happens or in the auction you have seen most of the times that the parties bid for the contracts.
04:24
Okay.
04:26
So there is a price rigging concept which which decrease down the price of the contract so that a major party could attract that contract at lower value...