Which of the following best describes the government's role in ensuring competition?

Which of the following best describes the government's role in ensuring competition?

• A. Creating monopolies
• B. Preserving marketplace competition
• C. Dictating pricing structures
• D. Encouraging state-owned enterprises

Answer: (B)

The government's role in ensuring competition is best described by preserving marketplace competition. This function is crucial in a free enterprise system, where a variety of businesses operate independently. The government actively intervenes to prevent monopolies and maintain a competitive environment, which is beneficial for consumers as it fosters innovation, keeps prices in check, and enhances quality. By enforcing antitrust laws and regulations, the government seeks to enhance competition rather than diminish it. This includes actions like preventing mergers that would excessively concentrate market power or taking action against businesses that engage in unfair practices that could stifle competition. In this way, the government creates a fair playing field where multiple businesses can thrive, which ultimately benefits the economy and consumers alike.

The government's role in ensuring competition is best described by preserving marketplace competition. This function is crucial in a free enterprise system, where a variety of businesses operate independently. The government actively intervenes to prevent monopolies and maintain a competitive environment, which is beneficial for consumers as it fosters innovation, keeps prices in check, and enhances quality.

By enforcing antitrust laws and regulations, the government seeks to enhance competition rather than diminish it. This includes actions like preventing mergers that would excessively concentrate market power or taking action against businesses that engage in unfair practices that could stifle competition. In this way, the government creates a fair playing field where multiple businesses can thrive, which ultimately benefits the economy and consumers alike.