Antitrust activities can cause inefficiencies by:
A) breaking up a natural monopoly.
B) creating many small firms that cannot capture available economies of scale.
C) Both of these statements are true.
D) Neither of these statements is true.

Question

Quizplus · Accepted Answer

Breaking up a natural monopoly may create multiple firms that cannot take advantage of economies of scale, causing inefficiencies. Therefore, both statements are true.

Antitrust Activities Can Cause Inefficiencies By