Which of the following statements is true of concerted activities?
A) They are illegal as they are never beneficial to the society.
B) They are only legal if a firm has monopoly power.
C) They reduce competition.
D) They are only legal when firms have a vertical territorial agreement.
E) They are performed by state governments to restrict monopolization.

Question

Quizplus · Accepted Answer

Concerted activities reduce competition. They are often beneficial to society. For example, joint research efforts to find a cure for cancer or to find substitutes for gasoline would seem to provide significant benefits to society. A sharing of technology may be beneficial also. Joint efforts in other areas may reduce costs and improve efficiency, with direct benefit to the public.

Which of the Following Statements Is True of Concerted Activities