Which of the following statements is true?
A) The active antitrust perspective believes that competitive market forces will automatically and actively reduce a firm's monopoly power in the long run.
B) The active antitrust perspective believes that the government should play the role of officials and umpires and enforce the rules of the competitive game.
C) The laissez-faire perspective views firms as players in a competitive game who will sometimes violate the rules in order to gain a huge advantage over others.
D) The laissez-faire perspective believes that an active enforcement of antitrust policy is the only way to reduce the monopoly power of giant firms.

Question

Quizplus · Accepted Answer

The active antitrust perspective believes in government intervention to enforce the rules of the competitive game, while the laissez-faire perspective favors minimal government intervention and trusts in competitive market forces to regulate firms' behavior. Option A is incorrect because the active antitrust perspective does not believe that competition will automatically reduce a firm's monopoly power in the long run. Option C is incorrect because it depicts firms as rule violators rather than rational actors pursuing their self-interests. Option D is incorrect because the laissez-faire perspective opposes an active enforcement of antitrust policy.

Which of the Following Statements Is True