asked 212k views
5 votes
In two or three sentences, describe how antitrust laws encourages competition

asked
User Lakshmen
by
7.7k points

1 Answer

2 votes
Antitrust laws prevent monopolies.
A monopoly is a company or business that dominates a particular market to such an extent that there is no viable competition to that company.
Since a monopoly does not have any other serious competition in a market, the monopoly is at greater liberty to charge higher prices and offer lower-quality prices.
Antitrust laws break up or limit the size of monopolies, allowing other companies to enter a market.
answered
User Qdr
by
7.9k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.