The reason that antitrust laws exist and are enforced is because most economists and politicians believe that
A) every industry should be perfectly competitive
B) monopolies do not maximize shareholder value in the long run
C) the price and quantity combinations delivered in a perfectly competitive market are both socially desirable and most efficient
D) monopolies use their market power to create economies of scale
E) small firms are the backbone of American society

Question

Quizplus · Accepted Answer

Antitrust laws are designed to prevent monopolies and promote competition because it is believed that the price and quantity outcomes of a perfectly competitive market are the most efficient and socially beneficial. These laws aim to ensure that no single entity can control a market to the detriment of consumers and the economy.

The Reason That Antitrust Laws Exist and Are Enforced Is