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Marina86 [1]
3 years ago
10

To maintain effective levels of competition in as many markets as possible, the government enforces .

History
2 answers:
choli [55]3 years ago
7 0

Answer:

The correct answer is antitrust laws.

Explanation:

Often referred to as <em>competition laws</em>, antitrust laws are statutes enacted by the U.S. government to protect customers from abusive business practices. These laws ensure that in an open-market economy there is fair competition. Along with the economy, these laws have evolved, protecting it against prospective monopolies and threats to the productive ebb and competition stream.

Ainat [17]3 years ago
6 0

Answer:

Antitrust laws.

Explanation:

Also known as anti-monopoly or competition laws, these are designed following the idea that a free market is the most efficient way of allocating resources in a society, because both suppliers and consumers maximize their output according to the prices set by competition in the market. According to this idea, monopolies disrupt the free market by stifling competition and distorting prices.

Antitrust laws have three main principles:

- Preventing monopolies from being formed, usually by banning mergers between large firms that would led them to create a monopoly.

- Limiting abusive practices by leading firms in a market, such as dumping and irrationally high prices.

- Banning of informal agreements among businesses that lead to distortions in the market.

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