Which of the following is least likely to violate the Sherman Act or the Clayton Act?
A)Competitive firms A, B, and C meet and agree to charge a common price.
B)Competitive firms D and E, each with 35 percent market shares, merge into a single firm.
C)Competitive firms F and G independently charge lower prices to frequent customers than to occasional customers.
D)Large dominant firm H forces buyers to purchase its product X in order to buy its popular product Y.

Question

Quizplus · Accepted Answer

The Sherman Act and the Clayton Act are designed to prevent anticompetitive practices. Choice C, where firms independently offer discounts to frequent customers, is a common and generally legal pricing strategy that does not imply collusion or anticompetitive mergers, unlike the scenarios described in the other options.

Which of the Following Is Least Likely to Violate the Sherman