Antitrust laws may

A. enhance the ability of firms to capture profits from a concentration of market power.

B. enhance the ability of firms to reduce economic losses.

C. restrict the ability of firms to operate at the socially efficient level of production.

D. restrict the ability of firms to merge.

Question

Danny Avila

Business

24 August, 20:09

Antitrust laws may

A. enhance the ability of firms to capture profits from a concentration of market power.

B. enhance the ability of firms to reduce economic losses.

C. restrict the ability of firms to operate at the socially efficient level of production.

D. restrict the ability of firms to merge.

+4

Answers (1)

Know the Answer?

Trent Powers · Answer 1

The correct answer is option D.

Explanation:

Antitrust laws can be defined as the laws that are designed to regulate the distribution of economic power in the market. The focus of these laws is to ensure that healthy competition prevails in the economy.

It restricts corporate mergers, predatory acts, aand concentration of monopoly power. It is applicable to all sectors in the economy, all industries, and services including manufacturing, transportation, marketing, etc.

Antitrust laws mayA. enhance the ability of firms to capture profits from a concentration of market power.B. enhance the ability of firms to reduce economic losses.C. restrict the ability of firms to operate at the socially efficient level of production.D. restrict the ability of firms to merge.