Restrictive Practices in Trade

Steps:

• Define restrictive practices as agreements that limit competition, such as price-fixing or market sharing.
• Review each option for signs of anti-competitive behavior that harms fair market operations.
• Identify elements like collusion among suppliers or builders that could trigger government investigation.
• Select the option showing clear collusion, as it violates antitrust laws.

Why B is correct:

• Price-fixing agreements among suppliers form a cartel, which is illegal under competition laws like the Sherman Act, restricting free market pricing.

Why the others are wrong:

• A: Normal commercial transaction with no collusion or restriction.
• C: Competitive bidding promotes fair rivalry, not restriction.
• D: Diverse sourcing encourages competition, not limits it.

Final answer: B