Question

What is the​ government's policy on collusion in the United​ States? Explain the rationale for this policy. In the United States

A. the government makes collusion legal with antitrust laws because monopolies create no deadweight loss.

B. the government makes collusion unnecessary with​ government-imposed barriers to entry because monopolies enhance economic efficiency.

C. the government encourages collusion with subsidies because resulting profits can be used to develop new products.

D. the government promotes collusion with the Federal Trade Commission because perfectly competitive markets enhance economic efficiency.

E. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.

Answer 1

The correct answer is letter "E": the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.

Step-by-step explanation:

Antitrust laws regulate competition between companies. To protect consumers from price manipulation and unfair competition by making sure trade remains unrestrained. When businesses conspire to turn competition to their favor, they violate antitrust laws.

Those regulations prohibit business practices such us monopolies since those types of organizations take control over a certain market, making almost impossible the entry of competitors and consumers have fewer choices and higher prices.