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?
Antitrust laws would prevent this potential merger in a market economy. Antitrust laws are in place to promote fair competition and prevent monopolies from forming. If the government determines that the merger would create a monopoly and harm competition in the bottled water industry, they could block the merger or require certain conditions to be met in order for it to proceed. Additionally, government regulators may also investigate potential anticompetitive practices, such as price fixing or collusion, that could harm consumers.
