The main purpose of the antitrust laws is
A) to encourage firms to produce where P MC.
B) to eliminate both negative and positive externalities.
C) to prevent the monopolization of industries.
D) to regulate natural monopolies.

Question

The main purpose of the antitrust laws is
A) to encourage firms to produce where P > MC.
B) to eliminate both negative and positive externalities.
C) to prevent the monopolization of industries.
D) to regulate natural monopolies.

Quizplus · Accepted Answer

The main purpose of antitrust laws is to prevent the monopolization of industries by promoting competition and preventing anti-competitive practices. This is achieved through various measures such as prohibiting price-fixing and mergers that could lead to a significant reduction in competition. The other choices are not directly related to the purpose of antitrust laws.

The Main Purpose of the Antitrust Laws Is