Asked by Arthur Davies on Sep 24, 2024

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​Which of the following is a violation of the antitrust laws?

A) ​A firm discussing/fixing price with its competitors
B) Making arrangements to stay out each other's markets
C) Merging with the competitor to eliminate competition
D) ​All of the above

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating anti-competitive conduct among businesses.

Price Fixing

An illegal agreement between competitors to fix prices at a certain level, rather than letting them fluctuate naturally with market forces.

Market Arrangements

Market arrangements refer to the structured organization and systems within which market transactions occur, including financial systems, trading systems, and legal frameworks.

  • Recognize the implications of antitrust laws in competitive practices.
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SA
simran aujla6 days ago
Final Answer :
D
Explanation :
All of the options violate antitrust laws. Discussing or fixing prices with competitors is price fixing, which colludes to set prices artificially high, and is a violation of antitrust laws. Making arrangements to stay out of each other's markets is market allocation, which allocates customers or territories between competitors, and is also a violation of antitrust laws. Merging with a competitor to eliminate competition reduces the number of firms in the market, leading to a decrease in competition, and is a violation of antitrust laws.