ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Excise taxes
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Anti-competitive laws
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Subsidies
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Safety nets
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Detailed explanation-1: -Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition. Antitrust laws are applied to a wide range of questionable business activities, including market allocation, bid rigging, price fixing, and monopolies.
Detailed explanation-2: -Principle. Competition law, or antitrust law, has three main elements: prohibiting agreements or practices that restrict free trading and competition between business. This includes in particular the repression of free trade caused by cartels.
Detailed explanation-3: -Cartel activity. It’s illegal for businesses to collude with competitors by: Imposing minimum resale prices. The law bans suppliers from setting minimum prices for the resale of their products or services. Cooperation among businesses. Misuse of market power. Exclusive dealing.