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Unintended Consequences of Antitrust Regulation
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How might antitrust regulations, designed to increase competition in an oligopolistic market, inadvertently harm consumers?

A

Enforcement of antitrust laws has no significant effect on consumer welfare since oligopolies do not change their pricing strategies drastically anyway.

B

Antitrust actions will always benefit consumers through lower prices resulting from enhanced competition among producers.

C

Increased production costs from smaller firms’ lack of economies of scale may lead to higher prices overall.

D

Regulations cannot harm consumers because they solely prevent unethical business practices and promote fairness.

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