Which of the Following Statements Is Not Correct

question 113

Multiple Choice

Which of the following statements is not correct?

• A)Two examples of early antitrust laws are the Sherman and Clayton Antitrust Acts.
• B)Antitrust laws automatically prevent mergers between companies that produce similar products.
• C)Antitrust laws give the government power to increase competition.
• D)Antitrust laws can reduce social welfare if they prevent mergers that would lower costs through more efficient joint production.

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Definitions:

Deadweight Loss

When a good or service fails to reach or cannot reach its market balance, an economic inefficiency occurs.

Maximize Loss

The strategic or accidental pursuit of actions that result in the largest possible financial loss, often used in theoretical analyses.

Deadweight Loss

The occurrence of reduced economic efficiency when a good or service's free market equilibrium is unmet.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable, often due to market inefficiencies like taxes or subsidies.