-Which of the following practices is restricted by the antitrust laws of the United States?
A)Merger of smaller firms into a large firm
B)Entry of new firms in the long run
C)Standardization of products in a market
D)Exit of non-performing firms in the long run
E)Quality differentiation by competitive firms

Question

-Which of the following practices is restricted by the antitrust laws of the United States?
A)Merger of smaller firms into a large firm 
B)Entry of new firms in the long run 
C)Standardization of products in a market 
D)Exit of non-performing firms in the long run 
E)Quality differentiation by competitive firms

Quizplus · Accepted Answer

Antitrust laws in the United States, such as the Sherman Antitrust Act, are designed to prevent anti-competitive practices and ensure fair competition. One of the key areas they address is the merger of firms when such a merger would significantly reduce competition or create a monopoly, hence the merger of smaller firms into a large firm could be restricted if it leads to reduced competition.

-Which of the Following Practices Is Restricted by the Antitrust