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In 2 or 3 sentences, describe how antitrust laws encourage competition.

William Cain

in Physics

1 answer

1 answer

Jeremy Wood on October 20, 2018

The antitrust laws are used to, theoretically, protect consumers from businesses who try to distort the market through unfair practices. The antitrust laws prevent the creation of cartels or groups of businesses working together to raise the cost of goods above the market value that would occur with competition. The also restrict the mergers and acquisitions of companies, which limit or inhibit competition, if a company were to get too large. And finally, these laws prevent the misuse of, or the creation of a monopoly power by a single or a few large companies, which distort the market and prevent competition and the prices that it considers the fair market price for consumers.

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