Antitrust policy is best described as which of the following?

Antitrust policy is best described as which of the following?

• A. Policies to regulate small businesses exclusively.
• B. Deregulating large firms to spur growth.
• C. Government regulation of large businesses that have established monopolies.
• D. Encouraging monopolistic mergers.

Answer: (C)

Antitrust policy aims to keep markets competitive by curbing the power of large firms that might abuse their dominance. This means government action to regulate or constrain businesses that have established monopolies or undue market influence, preventing practices like price gouging, collusion, or anti-competitive mergers. The focus is on promoting consumer welfare and healthy competition, not on regulating small businesses exclusively, nor on deregulating or enlarging the power of already dominant firms, nor on encouraging mergers that lessen competition.

Antitrust policy aims to keep markets competitive by curbing the power of large firms that might abuse their dominance. This means government action to regulate or constrain businesses that have established monopolies or undue market influence, preventing practices like price gouging, collusion, or anti-competitive mergers. The focus is on promoting consumer welfare and healthy competition, not on regulating small businesses exclusively, nor on deregulating or enlarging the power of already dominant firms, nor on encouraging mergers that lessen competition.