ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Legislation designed to limit the formation of monopolies or combinations of firms that act to restrictcompetition.
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Legislation designed to work in favor for one firm over others in the same market.
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Legislation designed to limit the formation of oligopolies or combinations of firms that act to restrictcompetition.
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Legislation designed to allow certain individuals and firms the opportunity to take part in a specificmarket.
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Detailed explanation-1: -Antitrust law is a kind of competition law and the concept originated to check on the abuse of various trusts in the late 19th century. It is a law against any combination or trust which prevents them from indulging in unfair trade practices which cause stagnant growth of other businesses or enterprises.
Detailed explanation-2: -Yet for over 100 years, the antitrust laws have had the same basic objective: to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up.
Detailed explanation-3: -Approved July 2, 1890, The Sherman Anti-Trust Act was the first Federal act that outlawed monopolistic business practices. The Sherman Anti-trust Act of 1890 was the first measure passed by the U.S. Congress to prohibit trusts.
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.