Asked by Brianna Baldwin-Hayes on May 18, 2024

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​Antitrust enforcement of vertical relationships is generally focused on

A) ​The dominant firm using horizontal contracts to extend market power to other levels of the supply chain
B) Vertical contracts reducing the intensity of competition
C) Vertical contracts that help consumers
D) ​All of the above

Antitrust Enforcement

The regulation and actions taken by the government to prevent monopolies and promote competition in the marketplace.

Vertical Relationships

Interactions and agreements between businesses at different stages of the production process, like suppliers and retailers.

Horizontal Contracts

Agreements between firms or entities at the same level of the market structure, often aimed at cooperation or co-marketing strategies.

  • Acquire knowledge on the potential antitrust law risks and enforcement practices pertaining to vertical and horizontal relationships.
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LS
Lyndsey SprattMay 24, 2024
Final Answer :
B
Explanation :
Antitrust enforcement of vertical relationships is primarily focused on vertical contracts reducing the intensity of competition, such as exclusive dealing, tying arrangements, and resale price maintenance. The goal is to prevent these contracts from limiting consumer choice and raising prices. While the dominant firm's use of horizontal contracts may be relevant, it is not the primary focus of antitrust enforcement in vertical relationships. Vertical contracts can potentially help consumers, but this is not the primary concern of antitrust enforcement.