Question

Governments often place legal limits on the power of companies so that one dominant company cannot control a geographic area or portion of an economy.

a. true
b. false

Answer 1

Government restrictions are placed on companies to prevent one dominant company from controlling a geographic area or portion of an economy.

Step-by-step explanation:

Government restrictions on the power of companies is a common practice to prevent one dominant company from controlling a geographic area or portion of an economy. These limitations are put in place to promote competition and prevent monopolies from forming. For example, in the United States, there were regulations that limited the number of destinations airlines could choose to fly to, the fares they could charge, and the interest rates banks could pay to depositors. These government actions demonstrate the role of government in ensuring fair competition in the economy.