Question

What is a trust? A. when one company sells a good at an extremely low price only to drive other competitors out of the market B. the exclusive legal right to make copies of, distribute, or perform all or part of a published or recorded work for a certain extended period of time C. an illegal combination of firms and businesses formed to destroy competition and regulate prices within a particular industry D. the size of a firm, which allows it to function better and use resources more efficiently

Answer 1

C. an illegal combination of firms and businesses formed to destroy competition and regulate prices within a particular industry

Answer 2

Answer:

C. an illegal combination of firms and businesses formed to destroy competition and regulate prices within a particular industry

Explanation:

A trust is a predatory tactic where companies in a particular industry come together to match the price and quantity practiced in the market for a good or service. Thus, all companies profit by charging higher prices than free competition. It is an abusive and prohibited practice. That is why government regulation is of paramount importance.