What is the primary purpose of antitrust laws?

• A. To encourage monopolistic practices
• B. To restrict competition in the marketplace
• C. To prevent monopolistic practices and promote competition
• D. To regulate product quality and safety

Answer: (C)

Antitrust laws are designed primarily to prevent monopolistic practices and promote competition within the marketplace. These laws aim to create a fair environment where businesses can compete on equal footing, which leads to better quality products, lower prices, and innovation. By preventing any one company from dominating an industry, antitrust laws help to ensure that consumers have a variety of choices and that no single entity can manipulate the market to their advantage.

Promoting competition is vital for a healthy economy, as it drives efficiency and encourages companies to improve their services and products to attract consumers. This framework ultimately benefits consumers and the economy by fostering an environment where multiple businesses can thrive and compete. The focus on competition helps to maintain the principles of a free enterprise system, which relies on market dynamics rather than artificial constraints.