When the government passes antitrust laws in an industry,we see
A) higher prices,lower output,and more choices.
B) lower prices,higher output,and fewer choices.
C) lower prices,higher output,and more choices.
D) higher prices,lower output,and fewer choices.
E) higher prices,higher output,and more choices.

Question

Quizplus · Accepted Answer

When the government passes antitrust laws in an industry, it is aimed at promoting competition and preventing monopolies. This leads to lower prices as companies are forced to compete with each other to attract customers, higher output as there is no monopoly power restricting production and more choices as consumers have access to a wider range of products and services from different companies. Therefore, the correct answer is C.

When the Government Passes Antitrust Laws in an Industry,we See