Question

Anti-trust laws ______________________.
a.
prevented businesses from fixing prices and limiting production
b.
allowed banks to team up to fix prices
c.
allowed businesses to join together to limit production
d.
prevented lawyers from revealing private conversations with their clients

Answer 1

Answer:

a.  prevented businesses from fixing prices and limiting production

Explanation:

Anti-trust laws refer to laws that were established by the United States government to avoid that companies engage in practices that affect customers and the competition in the market, for example, when several companies establish prices for their benefit and when companies limit their production to maintain certain price. According to this, the answer is that anti-trust laws prevented businesses from fixing prices and limiting production.

The other options are not right because anti-trust laws are about maintaining a free competition in the market and avoid unethical behaviors from the companies which means that these laws don't allow companies to fix prices, limit production or reveal information from clients.

Answer 2

Answer:

A. prevented businesses from fixing prices and limiting production

Explanation:

Antitrust laws often termed as competition laws, are collection of both federal and state laws or statutes developed by the U.S. government to guide the activities of business orgainzation, most especially, to protect consumers from exploitation from business practices or to enhance, competition for the betterment of the consumers.

The are three main statutes of antitrust laws, they includes the following:

1. The Sherman Act of 1890

2. The Clayton Act of 1914

3. The Federal Trade Commission Act of 1914.

These Acts serve three major functions, where the Section 1 of the Sherman Act stops or against the act of price-fixing and the operation of cartels, and not support other collusive practices that unreasonably restrain trade.

Also, Section 7 of the Clayton Act limits the mergers and acquisitions of organizations that most times greatly limits competition.

Lastly, Section 2 of the Sherman Act forbid the abuse of monopoly power.

Hence, it is concluded that Antitrust law prevented businesses from fixing prices and limiting production