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Chapter 11: Q. 12 (page 272)

What is the goal of antitrust policies?

Short Answer

Expert verified

To regulate the markets in an economy, the government employs a variety of antitrust measures.

Step by step solution

01

Definition

Antitrust laws allow the government to prohibit certain types of mergers and to break up giant corporations into smaller parts.

02

Explanation

Goals of Antitrust Policies:

  • To encourage market enterprises to compete in a free and fair manner.
  • To avoid a monopoly that concentrates all market power in the hands of a single manufacturer.
  • To make price discrimination illegal by providing reduced costs to consumers.
  • To protect customers by providing them with more options and higher-quality products.
  • To maximize market allocative efficiency.

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