ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increased Taxes
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Antitrust legislation and regulation
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Deregulation
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Laissez-faire
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Detailed explanation-1: -On the suggestion of the Commission, the Parliament enacted The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act). The aim of the Act was to prevent a monopoly and ensure an equal distribution of resources to all industries.
Detailed explanation-2: -Antitrust laws regulate the concentration of economic power to prevent companies from price colluding or creating monopolies. Proponents of antitrust laws argue that they keep consumer prices lower and foster innovation through increased competition.
Detailed explanation-3: -Federal Trade Commission and Department of Justice. Federal antitrust laws exist to prevent individual corporations from assuming a level of market power that makes them able to limit their output and raise prices without concern for any significant competitor reaction.
Detailed explanation-4: -Anti-trust laws are a body of statutes which help to regulate and make markets more competitive by preventing anti-competitive business practices, and misuse of monopoly.