In industries that are oligopolies, the government is concerned with various types of practices to ensure fair competition and prevent anti-competitive behavior. These practices include:
1. Price leadership: In an oligopoly, one or a few large firms set prices that other companies in the industry tend to follow. The government monitors price leadership to prevent price-fixing or collusion that could harm consumers.
2. Collusion: Collusion occurs when competitors cooperate to manipulate prices or output levels, leading to higher profits at the expense of consumers. The government seeks to prevent collusion among oligopolistic firms through antitrust laws and regulations.
3. Cartels: Cartels are formal agreements among firms in an industry to control prices, production, and market shares. Cartels are illegal in many countries because they distort competition and harm consumers by restricting output and raising prices.
Given these practices that the government is concerned with in oligopolistic industries, the correct answer to the question is:
D. All of the above: The government is concerned with price leadership, collusion, and cartels in industries that are oligopolies to promote fair competition and protect consumer welfare.
