Antitrust laws are described as which of the following?

Antitrust laws are described as which of the following?

• A. Body of statutes that authorize monopolies
• B. A set of internal company guidelines
• C. Body of legislation that prohibits monopolies and certain unfair business practices
• D. None of the above

Answer: (C)

Antitrust laws are a body of legislation designed to protect competition by prohibiting monopolies and certain unfair business practices. They establish rules to prevent companies from using market power to stifle competition—things like price-fixing, market division, bid-rigging, or mergers that substantially lessen competition. They are public laws enforced by government agencies, not internal company guidelines, and they do not authorize monopolies. So the description that characterizes them as a set of laws prohibiting monopolies and certain unfair practices best fits.

Antitrust laws are a body of legislation designed to protect competition by prohibiting monopolies and certain unfair business practices. They establish rules to prevent companies from using market power to stifle competition—things like price-fixing, market division, bid-rigging, or mergers that substantially lessen competition. They are public laws enforced by government agencies, not internal company guidelines, and they do not authorize monopolies. So the description that characterizes them as a set of laws prohibiting monopolies and certain unfair practices best fits.