Which of the Following Antitrust Laws Forbade Firms to Engage

question 11

Multiple Choice

Which of the following antitrust laws forbade firms to engage in price discrimination if the effect would lessen competition or create a monopoly?

• A)the Sherman Act
• B)the Clayton Act
• C)the Robinson-Patman Act
• D)the Cellar-Kefauver Act

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Definitions:

Comparative Advantage

The capacity of a party to produce products or services with a lesser opportunity cost compared to others.

Opportunity Cost

The cost of the next best alternative foregone when making a decision.

Specialization

A focus on a narrow area of knowledge or skill, leading to greater efficiency and expertise in that area.

Farmer

An individual who engages in the act of agriculture, raising living organisms for food or raw materials.