Explanation The market competition is the situation in which there are many sellers and buyers in the market. When there are many competitors in the market, there will be competition among them in price, quality and quantity. This competition is very important for the healthy market economy. There are many actions that reduces the market competition and one amongst them is the cartelization which is the process of making a formal group of sellers that agrees to sell the product at a unified higher price and controlling the market supply. Such actions are being controlled by the anti-trust laws in the US economy. Thus, the laws are also known as the competition laws that prevents the consumers from the predatory business practices. Option (a): The Clayton antitrust law was also introduced in the year of 1914 and it was an addition to the US anti-trust laws as it added further substances to make the anti competitive measures strict. It prevented the anticompetitive actions in their incipiency. It includes the practice of a board of directors serving on boards of multiple corporations which creates an interlocking between them and creating a distortion to the market competition...

The anti-trust law that prohibits the interlocking directorates.

Micro Economics For Today

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ISBN: 9781337613064

Author: Tucker, Irvin B.

Publisher: Cengage,

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Chapter 13, Problem 5SQ

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The anti-trust law that prohibits the interlocking directorates.

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