Supporters of antimonopoly enforcement argue that the real gain from such enforcement ?
Correct answer: C. Is that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising
- A. is that if encourages firms to engage in research which leads to new products
- B. is the revenue generated from the fines paid by those individuals who are found guilty of antitrust violation?
- C. Is that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising
- D. is that it forces firms to produce efficiently.
Explanation
Antimonopoly enforcement is mainly justified because the threat of penalties deters harmful conduct such as collusion, price-fixing, and deceptive advertising. Fines may generate revenue, but that is not the principal economic gain.
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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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