Which of the following statements is not correct?
A)Two examples of early antitrust laws are the Sherman and Clayton Antitrust Acts.
B)Antitrust laws automatically prevent mergers between companies that produce similar products.
C)Antitrust laws give the government power to increase competition.
D)Antitrust laws can reduce social welfare if they prevent mergers that would lower costs through more efficient joint production.

Question

Quizplus · Accepted Answer

Antitrust laws do not automatically prevent mergers between companies that produce similar products. Instead, they are designed to prevent anti-competitive practices, and each merger is evaluated on a case-by-case basis to determine its impact on market competition.

Which of the Following Statements Is Not Correct