What is the role of antitrust laws in preventing monopolistic behavior?

Economics Perfect Competition Questions



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What is the role of antitrust laws in preventing monopolistic behavior?

The role of antitrust laws in preventing monopolistic behavior is to promote competition and protect consumers by prohibiting and regulating practices that restrict competition, such as monopolies, price fixing, and unfair business practices. These laws aim to ensure that no single firm or group of firms can dominate a market, allowing for a level playing field and encouraging innovation, efficiency, and lower prices for consumers.