Antitrust laws in general are used to
A)prevent oligopolists from acting in ways that make markets less competitive.
B)encourage oligopolists to pursue cooperative-interest at the expense of self-interest.
C)encourage frivolous lawsuits among competitive firms.
D)encourage all firms to cut production levels and cut prices.

Question

Quizplus · Accepted Answer

Antitrust laws are designed to promote competition and prevent firms from engaging in behavior that could harm competition, such as collusion, price fixing, and market sharing among oligopolists. The goal is to ensure that markets remain competitive, which can benefit consumers by providing greater choices and cheaper prices. Choice B is incorrect because antitrust laws do not encourage oligopolists to pursue cooperation at the expense of self-interest, but rather to compete fairly. Choice C is also incorrect, as antitrust laws are designed to prevent frivolous lawsuits and ensure that competitive firms have a level playing field. Choice D is incorrect because antitrust laws do not encourage firms to cut production levels and cut prices, but rather to compete vigorously within a fair and open marketplace.

Antitrust Laws in General Are Used to