Which of the following will NOT be true if the antitrust laws are successful?

Question

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The antitrust laws aim to promote competition and prevent firms from engaging in anticompetitive behavior, such as restricting output or charging prices above marginal cost. In a perfectly competitive market, firms produce where marginal cost equals marginal revenue and charge a price equal to marginal cost. However, in reality, firms may have some market power and the ability to charge prices above marginal cost, which can result in economic profits. While the antitrust laws may not completely eliminate all market power, they aim to limit its effects and promote more competitive outcomes. Therefore, it is possible that firms may still earn some economic profits in the long run, but they should not engage in anticompetitive practices that result in significant economic profits above what would be earned in a competitive market.

Which of the Following Will NOT Be True If the Antitrust