Discussion
The rationale for prohibition of anti-competitive agreements is :
Answer: D
The rationale is both (A) and (B): the best allocation of economic resources, and the lowest prices with the highest quality.
Competition law, in India the Competition Act, 2002, prohibits anti-competitive agreements such as cartels, bid rigging and price fixing because free competition allocates resources to their most efficient uses and drives firms to offer consumers the lowest prices and the highest quality. Both are the economic benefits the prohibition protects.
Higher wages for workers is not the aim of competition law; that is the subject of labour law. Each of the first two options states only one half of the rationale.
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