Laws that make it illegal for firms to conspire to raise prices or reduce production are known as ?
Correct answer: E. antitrust laws
- A. antimonopoly laws
- B. all of these answers
- C. anti-collusion laws
- D. pro-competition laws
- E. antitrust laws
Explanation
Antitrust laws prohibit practices such as price-fixing, collusion and agreements to restrict output. The other terms are less precise labels, while antitrust is the standard legal term.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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