Which of the following statements is true?
A)The proper scope of antitrust laws is well defined and definite.
B)Antitrust laws focus on granting certain firms the option to form a cartel.
C)Policymakers have the difficult task of determining whether some firms' decisions have legitimate purposes even though they appear anti-competitive.
D)There is always a need for policymakers to try to limit a firm's pricing power, regardless of whether the firm's market is competitive, a monopoly, or an oligopoly.

Question

Quizplus · Accepted Answer

Antitrust laws are designed to promote competition and prevent anti-competitive behavior from firms. However, policymakers often face the difficult task of determining whether certain business decisions or practices have legitimate purposes, even though they may appear anti-competitive. The proper scope of antitrust laws is not well defined or definite, as it can vary depending on the specific situation and market conditions. Option A is incorrect because the scope of antitrust laws is not well defined. Option B is incorrect because antitrust laws do not focus on granting firms the option to form cartels, but rather aim to prevent collusion and other anti-competitive practices. Option D is incorrect because policymakers do not always need to limit a firm's pricing power, as it depends on the specific circumstances of the market and the behavior of the firm.

Which of the Following Statements Is True