Antitrust laws may
A)enhance the ability of firms to capture profits from a concentration of market power.
B)enhance the ability of firms to reduce economic losses.
C)restrict the ability of firms to operate at the socially efficient level of production.
D)restrict the ability of firms to merge.

Question

Quizplus · Accepted Answer

Antitrust laws are designed to prevent monopolies and promote competition in markets. Therefore, they often restrict the ability of firms to merge if the resulting company would have too much market power. This is intended to prevent the negative effects of monopolies or oligopolies, such as higher prices and reduced output.

Antitrust Laws May