Why There Are Many Controversies Over Anticompetition Laws

question 66

Multiple Choice

Why there are many controversies over anticompetition laws

• A)The proper scope of competition policy is not well defined.
• B)Anticompetition laws focus on granting certain firms the option to form a cartel but not all the firms.
• C)Policymakers have the difficult task of determining whether some firms' decisions have legitimate purposes even though they appear anti-competitive.
• D)Some illegal strategies can be welfare enhancing.

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Definitions:

Close-Substitute

A good or service that can easily replace another in satisfying consumer needs, with very little change in consumption patterns.

Consumer Preferences

The tastes, preferences, and priorities that individuals have regarding the consumption of goods and services.

Close-Substitute

A product or service that can easily replace another in the consumption preferences of consumers due to its similarity.

Complements

Goods or services that are consumed together because the use of one enhances the value of the other.