Question

What kind of rules and regulations does the government use to break up monopolies?

A) Antitrust laws
B) Tax codes
C) Environmental regulations
D) Trade policies

Answer 1

The government uses antitrust laws to break up monopolies and promote competition. Trade policies may also be used to address monopolies.

Step-by-step explanation:

The government uses antitrust laws to break up monopolies. Antitrust laws are regulations that aim to promote competition and prevent unfair business practices. These laws prohibit actions such as monopolistic mergers, price fixing, and other anti-competitive behaviors.

For example, in the United States, the government has used antitrust laws to break up major monopolies like Standard Oil and AT&T. These actions were taken to foster competition and protect consumer interests.

Trade policies can also be used to address monopolies, although their main purpose is to regulate international trade. Governments can impose tariffs or trade restrictions on monopolies that engage in unfair trade practices, such as dumping or abusing market dominance.