How Do Governments Promote Fair and Competitive Markets?
Governments play a vital role in maintaining fair and competitive markets through the implementation of antitrust laws and regulations. These laws prevent businesses from engaging in practices that restrict competition, such as forming cartels or abusing dominant market positions. Regulatory bodies also monitor market activities to ensure compliance and take corrective actions when necessary. Additionally, governments can promote competition by reducing entry barriers and supporting small and medium-sized enterprises (SMEs).