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All countries treat incumbents who fix prices and raise entry

barriers to new entrants as engaging in antitrust actions.
A. False
B. True

1 Answer

3 votes

Final answer:

The statement is false; although the U.S. has strong antitrust laws enforced by the FTC and the DOJ, not all countries enforce these laws in the same manner.

Step-by-step explanation:

The statement that all countries treat incumbents who fix prices and raise entry barriers to new entrants as engaging in antitrust actions is False. While many countries have laws against anticompetitive practices, the enforcement and scope of such laws vary greatly around the world. In the United States, antitrust laws such as the Sherman Act and the Clayton Act are enforced by the Federal Trade Commission and the Department of Justice. These agencies prohibit firms from engaging in activities like price fixing, bid rigging, and market division, which are all considered anticompetitive practices.

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