The antitrust laws are based on the
A) creative destruction view of competition.
B) idea that competition leads to greater economic efficiency than does a monopoly.
C) view that nonprice competition should be strictly regulated by government.
D) view that all negative externalities should be eliminated by government action.

Question

Quizplus · Accepted Answer

The antitrust laws are based on the idea that competition leads to greater economic efficiency than does a monopoly. This is because monopolies can restrict output, charge higher prices, and reduce innovation. The purpose of antitrust laws is therefore to promote competition by preventing anticompetitive behavior such as price-fixing, market allocation, and monopolization.

The Antitrust Laws Are Based on the