Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most MNEs in advanced economies are averse to invest in emerging markets

Question

Quizplus · Accepted Answer

Unfair competition often arises when businesses try to neutralize or eliminate threatening firms. To prevent this, laws are passed to define and prevent unfair competition, such as antitrust laws that prohibit things like price fixing and monopolistic practices. The other choices are not directly related to the need for laws to prevent unfair competition.

Laws Are Passed to Define and Prevent Unfair Competition Primarily