Read Chapter 8 and answer the following:

1. What are the differences between government protecting competition and government protecting competitors?

2. Refer back to Question 1 - how does that affect consumers' standard of living through its effect on the allocation of scarce resources, which have alternative uses?

3. What are the benefits of anti-trust (anti-monopoly) laws?

4. What are the costs of anti-trust laws?

5. Are regulatory commissions effective? Explain with examples.

Key Points: make sure you know/understand the role of regulatory commissions in the economy, the effects of anti-trust laws, and predatory pricing.