Antitrust policies usually focus on encouraging cost-efficient mergers between firms in the same industry.

Question

Quizplus · Accepted Answer

Antitrust policies aim to prevent anti-competitive behavior and promote competition in the market. While mergers are not inherently bad, cost-efficiency is not the only factor considered when evaluating the potential impact on competition. Antitrust policies may also focus on preventing monopolies, reducing barriers to entry for new firms, and blocking mergers that would substantially reduce competition in the market.

Antitrust Policies Usually Focus on Encouraging Cost-Efficient Mergers Between Firms