The main purpose of the antitrust laws is:
A) to encourage firms to produce where P MC.
B) the elimination of 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) the elimination of 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, which can lead to higher prices, less competition, and less innovation. The other choices are not directly related to the purpose of antitrust laws.

The Main Purpose of the Antitrust Laws Is