Question

If antitrust laws did not prohibit efforts to restrict competition in markets, then:________

A. attempts at collusion with rival firms would probably often fail.
B. all firms in the economy would earn negative economic proht in the long run.
C. all firms in the market would earn zero economic profit in the long run.
D. no firms would attempt to collude on price and/or quantity.
E. attempts at collusion with rival firms on price and or/quantity would succeed all the time.

Answer 1

A. attempts at collusion with rival firms would probably often fail.

Step-by-step explanation:

An antitrust law can be defined as a statute or legal framework developed by the federal and state government of the United States of America, which regulates the actions and conducts of business entities so as to protect end users (customers) from predatory business activities and to boost competitiveness among businesses.

In the United States of America, an example of an antitrust law is the Sherman Act of 1890.

Generally, if antitrust laws did not prohibit efforts to restrict competition attempts at collusion with rival firms would probably often fail.

Collusion can be defined as an illegal, secret and uncompetitive agreement between rivalry parties in attempt to destroy the market equilibrium through actions such as illegal-pricing.