Why does the government have laws against monopolies?
A)These laws are the main way the government ensures an equal distribution of income in the economy.
B)These laws are inconsistent with the role of government in a capitalist system.
C)These laws are the key way the government promotes competition in a capitalist system.
D)These laws are the main reason the Canadian economy is best classified as a socialist system.

Question

Quizplus · Accepted Answer

The government has laws against monopolies to promote competition in a capitalist system. Monopolies limit competition, which can lead to higher prices and lower quality products or services. By preventing monopolies, the government fosters competition, which can drive innovation and improve economic efficiency.

Why Does the Government Have Laws Against Monopolies