What were the positive effects of antitrust legislation? Select two options.
Answer (2)
Antitrust legislation promotes competition and protects consumers by preventing monopolistic practices. Key effects include fostering a diverse marketplace that enhances innovation and ensuring consumers have choices to prevent unfair pricing and poor quality. Historic examples, such as the breakup of AT&T, illustrate these benefits in action.
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Antitrust legislation refers to laws and regulations designed to promote fair competition and prevent monopolistic practices in markets. Here are two positive effects of antitrust legislation:
Promotes Fair Competition:
Antitrust laws help ensure a level playing field for businesses by prohibiting monopolistic practices such as price-fixing, collusion, and unfair mergers.
This encourages innovation as companies strive to improve their products and services to attract customers, leading to greater consumer choice and better quality offerings.
Protects Consumers:
By preventing monopolies and promoting competition, antitrust legislation helps keep prices in check, ensuring that consumers have access to goods and services at fair prices.
It also leads to improved consumer service because companies must work harder to win and retain customers in a competitive market.
Overall, antitrust laws play a critical role in maintaining competitive markets, which benefits both businesses and consumers by fostering a dynamic and innovative economic environment.
