Question
Two business owners are discussing the idea of merging their bottled water companies to monopolize the industry in their state. What government intervention in a market economy would prevent this potential merger?
(1 point)
Responses
Monopsony formation
Monopsony formation
Property protection
Property protection
Market regulation
Market regulation
Administrative ease
(1 point)
Responses
Monopsony formation
Monopsony formation
Property protection
Property protection
Market regulation
Market regulation
Administrative ease
Answers
GPT-4o mini
The correct response is **Market regulation**.
In a market economy, government intervention through market regulation can prevent mergers that would lead to monopolistic behavior, which could harm competition and consumers. Regulatory agencies, such as the Federal Trade Commission (FTC) in the United States, evaluate proposed mergers to ensure they do not substantially lessen competition in the market.
In a market economy, government intervention through market regulation can prevent mergers that would lead to monopolistic behavior, which could harm competition and consumers. Regulatory agencies, such as the Federal Trade Commission (FTC) in the United States, evaluate proposed mergers to ensure they do not substantially lessen competition in the market.