Question

Select the items that describe antitrust laws.

created to prevent monopolies.
invented to promote competition.
can have unintended consequences.
created one company industries.
encourage price setting to maximize profits.

Answer 1

Antitrust laws were created to prevent monopolies and encourage competition, prohibiting practices like price fixing and bid rigging. They allow for temporary monopolies as a reward for innovation but aim to prevent permanent market dominance that could harm consumers.

Step-by-step explanation:

Antitrust laws are designed with several purposes in mind, including the prevention of monopolies and promotion of competition within various industries. These laws aim to prevent anticompetitive behavior, such as fixing prices, bid rigging, and creating cartels, which run contrary to the principles of a free market. While U.S. antitrust laws do allow for certain exemptions, such as permitting a monopoly for a limited time in the case of a new invention under patent, generally they work to ensure competition is fair and balanced. Although antitrust laws are intended to encourage competition and economic efficiency, they can sometimes have unintended consequences. Regulation that may aim to reduce prices or control inflation could inadvertently reduce competition and create regulatory buffers that shield companies from market pressures.

Overall, antitrust laws were not created to encourage price setting to maximize profits, nor were they intended to create one company industries. Instead, they serve to create a market environment where competition flourishes and consumers can benefit from better products at lower prices, fostering an innovative and efficient economy

Answer 2

The correct answer of the given question above would be the first option. The statement that describes Antitrust laws is that, it is created to prevent monopolies. The Antitrust laws are rules that prevent the creation and behavior of monopolies. Hope this is the answer you are looking for.