Final answer:
Businesses that aim to eliminate competition and consolidate resources usually do so through horizontal integration, where they acquire companies at the same level in the industry. Antitrust laws exist to maintain market competition by regulating such business practices.
Step-by-step explanation:
Businesses that seek to buy out all competition and consolidate resources typically use the strategy known as horizontal integration. This approach involves a company increasing its size by acquiring or merging with other companies that operate at the same level in an industry, thereby reducing competition and increasing market share. An example of horizontal integration is when a tech company buys out other tech companies that produce similar products or services.
Antitrust laws are implemented to prevent the creation of monopolies through such practices, ensuring that markets remain competitive. Antitrust laws may prevent mergers that would lead to a significant reduction in competition, and in some cases, the government may even break up companies that are considered too large and threaten the competitive landscape.
On the other hand, vertical integration refers to a company expanding its operations into different steps of the same production process. For example, a manufacturer might acquire a supplier to control the supply chain from raw materials to final product distribution, which is different from horizontal integration where the expansion is within the same level of production.