Question

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.

Answer 1

The correct answer is option D.

Step-by-step explanation:

Antitrust laws can be defined as the laws that are designed to regulate the distribution of economic power in the market. The focus of these laws is to ensure that healthy competition prevails in the economy.

It restricts corporate mergers, predatory acts, aand concentration of monopoly power. It is applicable to all sectors in the economy, all industries, and services including manufacturing, transportation, marketing, etc.