Restrictive Practices in the Building Industry

Steps:

• Define restrictive practices as agreements that limit competition, such as price fixing or market sharing, often regulated by antitrust laws.
• Review each option to identify anti-competitive behavior versus normal market activities.
• Eliminate options involving legitimate business actions like purchasing land or bidding.
• Select the option showing collusion among suppliers to control prices.

Why B is correct:

• Price fixing by suppliers violates antitrust laws, like the Sherman Act, as it restricts free market competition and harms consumers.

Why the others are wrong:

• A: Land purchase is a standard business transaction, not restrictive.
• C: Competitive bidding promotes fair market practices, not collusion.
• D: Using varied suppliers encourages competition, not restriction.

Final answer: B