Chapter 14R, Problem 15MCQ

To determine

The correct option which states that the passage of laws intended to promote competition in the marketplace.

Answer to Problem 15MCQ

From the available options, the correct option is The Clayton Antitrust Act made price discrimination illegal.

Explanation of Solution

As Clayton Antitrust Act bans practices related to price discrimination and mergers which are anti-competitive and this act is passed by the country U’s congress without including two boards of directors. And, according to the Sherman Anti-Trust Act of 1890, the federal government has the right to proceed against trusts to dissolve them such as declaring the trusts illegal when they are in restraint of trade or commerce among states or foreign nations. It means all options: a, c, d, and e are incorrect.

Here, the correct option is b (The Clayton Antitrust Act made price discrimination illegal).

Economics Concept Introduction

Introduction: Antitrust laws are competitive laws that are developed by the government of the country U to protect consumers against exploitative business practices in the country.