Antimonopoly laws are based on the proposition that ?
Correct answer: B. competition is the best way to achieve efficiency.
- A. increasing market power is the best way to achieve efficiency.
- B. competition is the best way to achieve efficiency.
- C. public ownership is the best way to achieve efficiency
- D. regulation is the best way to achieve efficiency.
Explanation
Antimonopoly policy rests on the view that competition pressures firms to lower costs, improve quality, and use resources efficiently. Market power can instead allow firms to restrict output and charge higher prices.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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