The aim of antitrust policy is to:
A) provide adequate incentives for inventors and entrepreneurs.
B) prevent firms from acquiring or exercising undue market power.
C) protect established firms by deterring new entry into industries.
D) regulate the prices charged by perfectly competitive firms.

Question

Quizplus · Accepted Answer

Antitrust policy aims to prevent firms from acquiring or exercising undue market power, which can harm competition and consumers. This is typically achieved through measures such as enforcing laws against price-fixing, blocking mergers that would result in a dominant market position for a firm, and increasing scrutiny of potentially anticompetitive practices. The other options listed are not consistent with the goals of antitrust policy.

The Aim of Antitrust Policy Is To