Question

A monopoly is a firm that can set its own prices and does not face competition. The government has _____ to prevent companies from becoming monopolies.

A. Copyright
B. Patents
C. Antitrust laws

Answer 1

C. Antitrust laws is your answer.

Answer 2

Antitrust laws (Answer C) are in place to prevent companies from becoming monopolies.

Antitrust laws are also known as competition laws regulate anti-competitive company behavior by: (1) banning improper market behavior (e.g. price gouging, refusal to deal, formation of cartels etc.); and (2) supervising large company mergers or acquisitions.