Which of the following best describes the role of competition policy in addressing market failure to achieve productive efficiency?

Competition policy plays a crucial role in fixing market failures by promoting fair competition among businesses. When companies compete fairly, it encourages them to be more efficient, reduce prices, and improve their products, which benefits consumers. For example, if several companies are selling similar products, they will try to offer better quality or lower prices to attract customers. This competition can lead to productive efficiency, meaning resources are used in the best way possible without waste. Without competition policy, some companies might become too powerful and could charge high prices or offer poor products, harming consumers and the economy.