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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