The Main Goal of Antitrust Policy Is to

question 61

Multiple Choice

The main goal of antitrust policy is to

• A) encourage firms to produce at the MR = demand level.
• B) regulate natural monopolies.
• C) prevent the monopolization of industries.
• D) prevent the nationalization of industries.

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Definitions:

Civil Aeronautics Board

A former federal agency in the United States responsible for regulating the air transport industry until its deregulation in the early 1980s.

Sherman Act

An 1890 United States antitrust law that outlaws monopolistic practices and promotes competition.

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than competing naturally in the market.

Tying Contracts

Agreements where the sale of one product (the tying product) is conditioned on the buyer purchasing another product (the tied product).