What is the government's policy on collusion in the United States? Explain the rationale for this policy. In the United States A. the government makes collusion legal with antitrust laws because monopolies enhance economic efficiencyenhance economic efficiency. B. the government makes collusion unnecessary with government-imposed barriers to entry because monopolies create no deadweight losscreate no deadweight loss. C. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiencyreduce economic efficiency. D. the government encourages collusion with subsidies because resulting profits can be used to develop new products. E. the government promotes collusion with the Federal Trade Commission because perfectly competitive markets result in no deadweight lossresult in no deadweight loss.

C. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.

Explanation:

Collusion is an agreement that is made between rivals aimed at disrupting market equillibrum. Companies that will usually compete against one another collude together to gain an unfair advantage.

To provide a level playing ground for all parties in a market the government implemented anti trust laws that makes collusion illegal. Companies are prevented from gaining unfair advantage.

Monopolies are example of companies regulated by antitrust laws. When one player determines supply and price in an economy efficiency reduces. There is less competition so the supplier is not motivated to supply adequate product to the customer.

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