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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