APFIVE Unintended Consequences of Antitrust Regulation
In an oligopolistic market with few large producers, how could government-imposed antitrust regulations aimed at increasing competition 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
Regulations cannot harm consumers because they solely prevent unethical business practices and promote fairness.
C
Antitrust actions will always benefit consumers through lower prices resulting from enhanced competition among producers.
D
Increased production costs from smaller firms’ lack of economies of scale may lead to higher prices overall.
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