Asked by Jacob Willard on May 09, 2024

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Specific business practices such as price discrimination are prohibited by the:

A) Clayton Act of 1914.
B) Sherman Act of 1890.
C) Federal Trade Commission Act of 1914.

Price Discrimination

Occurs when a seller charges two or more prices for the same good or service.

Clayton Act

A United States antitrust law passed in 1914, aimed at promoting competition by preventing unfair practices such as price discrimination and exclusive dealing agreements.

Sherman Act

The Sherman Act is a landmark U.S. antitrust law enacted in 1890 to combat anti-competitive practices and promote fair competition.

  • Recognize and describe various antitrust legislations and their implications for business practices.
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Siti Nur AtikahMay 16, 2024
Final Answer :
A
Explanation :
Price discrimination, which refers to the practice of charging different prices to different customers for the same product, is prohibited by the Clayton Act of 1914. This law was enacted to prevent anti-competitive business practices, including price discrimination, that could harm consumers and smaller firms. The Sherman Act of 1890 is a broader antitrust law that prohibits illegal monopoly and restraint of trade, while the Federal Trade Commission Act of 1914 created the FTC to enforce antitrust laws and investigate unfair business practices. However, neither of these laws specifically prohibits price discrimination.