According to the Clayton Act,price discrimination is considered socially detrimental if it
A) increases competition in a market.
B) does not allow the dominant firm in the market to remain a monopolist.
C) lessens competition or creates monopoly.
D) involves the largest company in a respective industry.
E) involves small businesses being shut out of a market.

Question

Quizplus · Accepted Answer

The Clayton Act considers price discrimination socially detrimental if it lessens competition or creates a monopoly. This is because such practices can lead to higher prices for consumers, reduced innovation, and reduced choices in the market. Hence, price discrimination that results in the lessening of competition or the creation of monopoly is considered harmful, while price discrimination that increases competition or allows for greater consumer choice is considered beneficial. The other options are not relevant in the context of the Clayton Act's view of price discrimination.

According to the Clayton Act,price Discrimination Is Considered Socially Detrimental