Under antitrust laws, which of the following practices is most likely to be prohibited?

• A. Expanding production to meet demand
• B. Advertising a new product
• C. Offering discounts to loyal customers
• D. Colluding with competitors to fix prices

Answer: (D)

Verified step by step guidance

1. Understand the purpose of antitrust laws, which are designed to promote competition and prevent practices that restrict it.
2. Identify the nature of each practice: expanding production and advertising are generally pro-competitive actions, while offering discounts to loyal customers is a common competitive strategy.
3. Recognize that colluding with competitors to fix prices involves an agreement to set prices at a certain level, which reduces competition and harms consumers.
4. Recall that price-fixing agreements are illegal under antitrust laws because they lead to higher prices and reduced market efficiency.
5. Conclude that among the options, colluding with competitors to fix prices is the practice most likely to be prohibited by antitrust laws.