Question

If a certain business monopolizes a particular industry, the government will attempt to stop it. This is an example of which economic function of government?

Answer 1

The government's role in stopping a business that monopolizes an industry is part of its economic function to ensure competition. This includes actions like blocking mergers, ending restrictive practices, and regulating natural monopolies.

Step-by-step explanation:

If a business monopolizes a particular industry, the government's attempt to stop it pertains to the economic function of government to maintain competitive markets. The role includes blocking anticompetitive mergers and practices such as restrictive contracts that might limit competition. While a natural monopoly might be more challenging to decentralize, the government may choose to regulate price and output instead.

In some situations, the government could create a government monopoly, for instance, by issuing patents that provide a company exclusive rights to a new product or service for a certain period. All these actions are in line with government policies aimed at enhancing competition and preventing the negative effects of monopolies and anti-competitive behaviors.

Answer 2

If a certain business monopolizes a particular industry and the government attempt to stop it, this exemplify the maintaining competition economic function of government. It is part of the government role to maintain competition in an economy so that companies will be able to compete and and offer excellent products to consumers at lower prices.