Which of the following is true of Antitrust policy?
A)Antitrust policy prohibits agreements that allow free trade.
B)Antitrust policy restricts abusive behavior by a firm dominating a market.
C)Antitrust policy allows anti-competitive practices.
D)Antitrust policy encourages establishment of monopoly firms.
E)Antitrust policy creates trade barriers like tariffs and quota.

Question

Quizplus · Accepted Answer

Antitrust policy is designed to promote competition and prevent monopolies or oligopolies from dominating a market. It does this by restricting anti-competitive behavior by firms, such as price-fixing, bid-rigging, and predatory pricing. The policy does not prohibit agreements that allow free trade, allow anti-competitive practices, or encourage establishment of monopoly firms. Antitrust policy is intended to promote free trade and competition, not create trade barriers like tariffs and quotas.

Which of the Following Is True of Antitrust Policy