Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most multinational entities in advanced economies are averse to invest in emerging markets

Question

Quizplus · Accepted Answer

Laws are passed to define and prevent unfair competition primarily because businesses sometimes try to neutralize threatening firms. This can take various forms, such as predatory pricing, exclusive dealing, and collusion, which can harm competition and consumers. Governments aim to protect competition in order to encourage innovation, lower prices, and improve quality. Laws against unfair competition seek to promote a level playing field for all firms and prevent anticompetitive behavior that could harm consumers or other businesses.

Laws Are Passed to Define and Prevent Unfair Competition Primarily