Question

What is the goal of antitrust policies?

Short answer

To regulate the markets in an economy, the government employs a variety of antitrust measures.

Step-by-step solution

Definition

Antitrust laws allow the government to prohibit certain types of mergers and to break up giant corporations into smaller parts.

Explanation

Goals of Antitrust Policies:

• To encourage market enterprises to compete in a free and fair manner.
• To avoid a monopoly that concentrates all market power in the hands of a single manufacturer.
• To make price discrimination illegal by providing reduced costs to consumers.
• To protect customers by providing them with more options and higher-quality products.
• To maximize market allocative efficiency.