Which statement best describes the aim of competition policy?

• A. Aims to promote competition for the benefit of consumers
• B. Focusses on helping large firms
• C. Allows cartels
• D. Encourages dominant firms to price below cost

Answer: (A)

Competition policy is about keeping markets competitive so consumers benefit. That means promoting real competition to bring lower prices, better quality, more choice, and spur innovation. It works by stopping anti‑competitive behavior—like cartels and abuse of market power—and by reviewing mergers that could lessen competition, so the market remains open and efficient for consumers.

The other statements miss the main goal: helping large firms would reduce overall competition; allowing cartels directly undermines competition; and encouraging dominant firms to price below cost is a tactic that harms consumers and market health, which competition policy aims to prevent.