question archive One way the government can restore competitiveness in a market is through: a) patents

One way the government can restore competitiveness in a market is through: a) patents

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One way the government can restore competitiveness in a market is through:

a) patents.

b) copyrights.

c) tariffs.

d) taxes.

e) antitrust laws.

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The correct answer is e) antitrust laws.

  • This is because antitrust laws prevent a company in the industry from taking actions that would result in less competition in the market (e.g. the top producer acquiring the second-biggest producer). Patents and copyrights do not affect the market's competition but rather the legal environment, whereas tariffs and taxes are related to government revenue.