Question

"In 2010, a regulatory agency, the Federal Trade Commission (FTC), barred the merger of two of the largest information technology providers in the industry."

This is a sample excerpt from a business news article. Think about what the excerpt has to say about the role of regulation.
What function of regulatory agencies does the FTC’s actions reveal?

keeping the economy rapidly growing
protecting consumers from fraud
promoting competition
ensuring product safety

Answer 1

 C . promoting competition

Answer 2

Answer:

promoting competition

Explanation:

If two competing companies come together, this can reduce competitiveness and affect prices, damaging consumers and economic activity as a whole. To curb this type of practice, when a proposed merger of competitors is required, regulatory agencies make technical analyzes based on precepts aimed at ensuring market stability. If the regulatory body concludes that this practice may unbalance the competitive environment, mergers will be prohibited.