Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. in an effort to bring resource allocation closer to the social optimum, public officials attempt to force oligopolies to compete instead of cooperating.

consider the following scenario:

suppose that the leaders of several oil corporations hold a secret meeting in the cayman islands where they agree to restrict fuel output in order to boost prices. as a result of the higher fuel prices, an airline company loses billions of dollars.

this airline company could recover three times the damages it has sustained by suing the appropriate oil corporations under which of the following laws?

a. the celler kefauver act of 1950
b. the sherman antitrust act of 1890
c. the robinsonpatman act of 1936
d. the clayton act of 1914

Option D is correct

Explanation:

It's a violation of the Clayton act of 1914 which prohibits price fixing which was a the aim of the oil corporation leaders in the meeting they had at Cayman islands.

The Clayton antitrust act is a price of legislation passed by the u.s congress in 1914 which explains and prohibits unethical business such as price fixing and monopolistic acts.

a progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. that means it takes a bigger percentage from high income earners than it does from low income people.

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