In theory, markets left alone should be competitive; however, when they are not, governments can promote competition in the marketplace.

Question

Quizplus · Accepted Answer

This statement is true. Markets may not always be competitive due to factors such as monopolies, oligopolies, or collusion among competitors. In such cases, governments can enact policies and regulations to promote competition, such as antitrust laws, price controls, or subsidies for smaller competitors.

In Theory, Markets Left Alone Should Be Competitive; However, When